When we are conducting our due diligence efforts for multi-family properties one of the key factors we look at is the demand for housing in the area.  Job growth is the primary indicator of an increasing demand for housing.  Many of the best multi-family investing locations over the last few years have been in Texas.  The following article does a good job of explaining why that is true.

The following information is taken from an article written by Mark Arend and published on the Site Selection website an online magazine for Corporate Real Estate Strategy and Area Economic Development.  We thought it interesting enough to share with our readers.

If the path being beaten to Texas' front door is any indication, there's a better way to do things in the Lone Star State.  Giving businesses some certainty with which to risk investment capital and expand their enterprises has been central to the state's economic success.

By most measures, including Site Selection's own Governor's Cup and Business Climate Rankings, Texas is the place to be for business and industry.  Companies are flocking to the Lone Star State - Atlas Van Lines' annual study of corporate relocations in 2010 logged more than 7,200 relocations inbound to Texas, the sixth highest, and 5,300 outbound relocations.  Overall, Texas claimed 58 percent of the inbound relocations.  More to the point, 40 percent of the new U.S. jobs created since June 2009 were created in Texas.

On the subjective side, survey respondents offered these comments regarding their selection of Texas as the state to beat in 2011:

* "a pro-business, state"

entrepreneurial, right-to-work

* "no state income tax, ease of pulling permits, available work force"

* " the government makes it easy to do business"

* "Texas is progressive, fewer regulations"

* "willingness to work with business"

* "the tax climate, regulatory environment, incentive programs and work-force development efforts"

* "the state fights OSHA, EPA and other negative, useless regulations;

no state income tax"

* "work-force availability, existing facilities and good economics for labor and facilities"

* "cooperation and flexibility of state and local officials; proactive in growing the economy."

To read the entire article click here.

In September Forbes presented a list of the top cities for projected job growth.  San Antonio ranked number one with El Paso and Austin-Round Rock also listed. For more information click here. 

While we have many associates who are investing in Texas, Mary Jane and I like investing closer to home so we concentrate on areas within an 8 hour drive from our home here in Virginia.  Fortunately the job market is good in Virginia and several of the surrounding states.  With all that said, job growth is just one of the due diligence checklist items but it does give you a place to start.  In addition, it is important to state that good opportunities can be found anywhere.