By Jim McAlister IV
President & Chief Executive Officer
California, which used to lead the nation in population growth, is now losing population. For example, Intel Corp. stated that they will never build another plant in California.
The cost of living and operating a business in California is well over double that of living and operating in Texas. The result is individuals (employees) and companies (employers) moving to Texas by the droves.
Texas is the No.1 relocation spot for California businesses and individuals. Austin is capturing the highest amount of the migration in the state. This is due to a similar culture and high-tech industries. Dallas is the second highest relocation spot within the state for California transplants.
While California may be the “poster child” for anti-business climates, there are many other states following in its footsteps. This will continue to incentivize individuals and companies to move to Texas.
Going back to the mid 1800s, Texas has always grown in population of at least double that of the U.S. This is due to an abundance of land, plenty of water, warm climate, proximity to Latin America, port access, being centrally located in the U.S., and more.
All these long term growth trends still hold true today. The growth is happening at even a higher rate than normal due to Texas’ current pro-growth and pro-business climate.
The implication of this growth to a land fund such as ours is profound. Population and job growth result in land absorption. Being the top ranked state for job and population growth translates to being the number one state for land absorption.
Our model is buying distressed, undervalued land sites, entitling them and then selling to developers at full market value. The one ingredient we need for success is demand for land. We are clearly operating in the best market in the U.S.