Real Estate Market Overview Galveston-Texas City
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RealReal EstateEstate MarketMarket OverviewOverview Galveston-TexasGalveston-Texas CityCity Jennifer S. Cowley Assistant Research Scientist Texas A&M University July 2001 © 2001, Real Estate Center. All rights reserved. RealReal EstateEstate MarketMarket OverviewOverview Galveston-TexasGalveston-Texas CityCity Contents 2 Population 5 Employment 7 Job Market 8 Major Industries Business Climate 10 Education 11 Transportation and Infrastructure Issues 12 Public Facilities Urban Growth Patterns Map 1. Growth Areas 13 Housing 16 Multifamily 17 Manufactured Housing 18 Seniors Housing Retail Market 19 Map 2. Commercial Building Permits 20 Map 3. Retail and Office Building Permits Office Market 21 Industrial Market Conclusion RealReal EstateEstate MarketMarket OverviewOverview Galveston-TexasGalveston-Texas CityCity Jennifer S. Cowley Assistant Research Scientist Kemah FM 518 League City Friendswood FM 646 Dickinson I 45 Texas City FM 1764 Santa Fe SH 6 La Marque Hitchcock SH 87 Galveston Area Cities and Towns County Land Area of Galveston- Algoa Kemah Galveston Texas City MSA Bacliff La Marque 403.57 square miles Dickinson League City Friendswood Texas City Population Density (2000) Galveston Santa Fe Hitchcock Seabrook 620 people per square mile he Galveston-Texas City MSA is County, for which Galveston is the dollar tourism industry. Less than 50 on the Gulf of Mexico about 45 county seat. Galveston Island’s beach square miles of the county (about 12 T miles south-southeast of Hous- stretches 32 miles and provides the percent) are located off the mainland. ton. The MSA consists of Galveston backdrop for the area’s multimillion- 1 POPULATION Kelly Air Force Base, San Antonio Galveston-Texas City MSA Population Year Population 1990 218,246 1991 222,881 1992 227,336 1993 231,932 1994 234,275 1995 236,990 1996 239,739 1997 242,310 1998 244,993 1999 248,469 2000 250,158 Source: U.S. Census Bureau Area Cities with 10,000 or More Residents Growth 1990–2000 City 1998 Population (in percent) Galveston 57,247 –4.0 League City 45,444 52.0 Texas City 41,521 1.7 Friendswood 29,037 27.3 Dickinson 17,093 13.6 La Marque 13,682 –2.4 Source: U.S. Census Bureau he Galveston-Texas City MSA’s majority of area growth is a result of Texas Water Development Board ex- 1990–2000 population growth natural growth (births minus deaths). pects a 1.9 percent growth rate per year T rate was approximately 1.5 per- The area is expected to grow 14 per- through 2020. Slightly less than 70 per- cent per year. The area is growing at a cent between 2000 and 2010, accord- cent of the Galveston-Texas City MSA rate slightly slower than the state. The ing to the Texas State Data Center. The population lives on the mainland. 2 Texas Metropolitan Area Population Change, 1990–2000 (in percent) McAllen-Edinburg-Mission 48.5 Galveston-Texas City 15.1 Austin-San Marcos 48.2 Tyler 15.5 Laredo 44.9 El Paso 14.9 Dallas 31.5 Corpus Christi 14.3 Brownsville-Harlingen-San Benito 28.9 Victoria 13.1 Brazoria County 26.1 Waco 12.9 Houston 25.8 Texarkana 9.4 Fort Worth-Arlington 25.1 Lubbock 9.0 Bryan-College Station 25.1 Wichita Falls 7.8 Texas 22.8 Longview-Marshall 7.7 Killeen-Temple 22.6 Beaumont-Port Arthur 6.6 San Antonio 20.2 Abilene 5.8 Sherman-Denison 16.4 San Angelo 5.6 Amarillo 16.2 Odessa-Midland 5.1 Source: U.S. Census Bureau Galveston-Texas City MSA Projected Population Texas State Texas Water Year Data Center Development Board 2005 263,970 — 2010 279,620 300,009 2015 292,110 — 2020 303,718 349,260 Sources: Texas State Data Center and Texas Water Development Board Projected Population Growth, 2000–2020 (in percent) 50 40 30 40.2 20 24.3 10 0 Galveston-Texas City MSA Texas Source: Texas State Data Center 3 Household Composition Galveston MSA Texas Median household size (1990) 2.75 2.73 Population younger than 18 (1999, in percent) 27.1 28.5 Population 65 and older (1999, in percent) 11.0 10.1 Source: U.S. Census Bureau Ethnic Distribution (in percent) Galveston County MSA Texas Ethnicity 1990 2000 1990 2000 White 66.2 63.1 60.8 52.4 Hispanic 14.2 18.0 25.3 32.0 Black 17.5 15.3 11.7 12.2 Asian 1.7 2.1 0.3 3.2 American Indian 0.4 0.4 1.8 0.3 Other 0.1 0.1 0.2 Two or more races* — 1.1 — 1.1 *For the 2000 Census, the Census Bureau changed the “race” options, allowing people to report their race as “other” or as two or more races. Source: U.S. Census Bureau he 1999 per capita income for Hispanic population, following the the Galveston-Texas City MSA statewide trend for this ethnic group. T was $25,296. The state average The average age of the population is was $26,834. The area has a growing slightly older than that for the state. 4 EMPLOYMENT Source: U.S.BureauofLaborStatistics 100,000 102,000 104,000 106,000 108,000 110,000 112,000 114,000 116,000 118,000 120,000 98,000 10 12 14 Source: U.S.BureauofLaborStatistics 0 2 4 6 8 January-95 May Galveston-Texas City MSA UnemploymentRate CityMSA Galveston-Texas 1990 Sept Galveston-Texas City MSA Employment CityMSA Galveston-Texas January-96 1991 May Galveston 1992 Sept January-97 1993 May (in percent) Sept 1994 5 Texas City January-98 1995 May Sept 1996 January-99 1997 League City May Sept 1998 January-00 May 1999 Sept January-01 2000 May Top Ten Employers, Galveston Island Top Ten Private Employers, Mainland University of Texas Medical Branch United Space Alliance Education Bergstrom Air Force Base,Aerospace Austin 12,765 employees 4,000 employees Clear Creek Independent School District NASA/Johnson Space Center Education Aerospace 3,356 employees 3,000 employees American National Insurance Company Lockheed Martin Engineering & Sciences Insurance Aerospace 1,612 employees 2,650 employees Galveston Independent School District BP-Amoco Texas City Refining Education Petrochemical 1,405 employees 2,100 employees Galveston County The Boeing Company Government Aerospace 1,200 employees 2,000 employees Moody Gardens Columbia/Clear Lake Regional Medical Center Hospitality Medical care 1,077 employees 1,268 employees City of Galveston Union Carbide Corp/DOW Chemical Government Petrochemical 755 employees 1,100 employees Landry’s Seafood Restaurants Memorial Hospital Southeast Restaurant Medical care 560 employees 1,050 employees Fertitta Hospitality Gulf Greyhound Park Hospitality Dog Racing 535 employees 890 employees First Wave - Newpark SPACEHAB Ship and rig building Engineering 450 employees 718 employees Sources: Galveston and Texas City-LaMarque Chambers of Commerce, 2001 Employment Growth by Industry Galveston-Texas City MSA Texas Employment growth, 2000 (in percent) –0.7 3.2 Unemployment rate (in percent) 5.9 4.2 New jobs in 2000 –600 288,900 Employment growth by sector (in percent) Services 0.0 4.7 Trade 1.0 3.1 Manufacturing –2.4 0.1 Mining 0.0 2.3 Finance, insurance and real estate –11.5 1.3 Construction –2.3 6.2 Government 0.8 1.7 Transportation, communications and public utilities 2.8 5.1 Sources: U.S. Bureau of Labor Statistics and Texas Workforce Commission 6 Texas Metropolitan Area Employment Change, 1990–2000 (in percent) Austin-San Marcos 58.8 El Paso 15.4 Laredo 40.3 Waco 14.3 McAllen-Edinburg-Mission 35.8 Lubbock 14.0 Dallas 30.4 Sherman-Denison 12.5 Brownsville-Harlingen-San Benito 30.1 Longview-Marshall 12.2 Bryan-College Station 29.2 Abilene 11.4 Killeen-Temple 28.7 San Angelo 10.7 San Antonio 28.6 Corpus Christi 10.3 Fort Worth-Arlington 23.7 Galveston-Texas City 8.2 Texas 23.3 Wichita Falls 7.8 Tyler 22.9 Odessa-Midland 6.5 Victoria 22.4 Texarkana 4.5 Houston 22.1 Beaumont-Port Arthur 3.5 Amarillo 18.6 Brazoria County 2.3 Source: U.S. Bureau of Labor Statistics, February 2001 odest employment growth Education, government and health The MSA’s largest employers are has occurred in the MSA care are the major employers on aerospace and petrochemical compa- Msince 1990. Declines in con- Galveston Island; on the mainland, nies. The area’s economy is relatively struction, manufacturing and finance, aerospace, chemical and petrochemi- diversified. Texas City employment is insurance and real estate employment cal processing are the major employ- mostly industrial, based primarily on resulted in a decline in nonagricultural ers. Galveston and Texas City had simi- several large petrochemical and refin- employment in the MSA during 2000, lar unemployment rates, 7 and 6.3 ery operations. Major Galveston em- according to the Texas Workforce percent, respectively, for January 2001. ployment sectors are tourism, educa- Commission. The U.S. Bureau of Labor League City had a significantly lower tion, health care and ship repair. Statistics showed total civilian employ- rate of 2.4 percent for January 2001. ment in the MSA to be 114,039 for 2000, up 21 jobs from 1999. JOB MARKET alveston is a major vacation week to the island, boosting jobs in the doring Services of America and Ameri- destination, with more than retail and service sectors. Royal Carib- cana Ships will employ 1,200 when G 4,000 hotel rooms and condo- bean will begin offering cruises from construction is completed in 2004. miniums and numerous tourist attrac- the Port of Galveston starting in 2001. In League City, Apache Telecom tions. The city’s hospitality industry In Galveston, First Wave Newpark merged with Hi-Tech Communications generates more than $350 million an- Shipbuilding expanded its shipbuilding at the end of 2000.