Strong Texas economy bucks national trends
The Texas economy is marching to the beat of its own drummer, despite a national economy that’s singing a different tune. Experts believe a big reason for Texas’ strong position is oil. “Right now, things are looking very well,” the state’s chief revenue estimator, John Heleman, told the Associated Press in March 2008. “Higher oil prices are good for Texas because we’re such an oil-intensive state.” But oil doesn’t account for the whole story. Consider these facts:

• Texas continues to create more jobs than the nation.

• The state’s non-farm employment rose 2.2% from December 2006 to December 2007, compared with a 0.9% increase for the United States.

• The state’s seasonally adjusted unemployment rate fell from 4.7% in December 2006 to 4.5% in December 2007.

• Homes are affordable here. In January 2008, the median price in Texas for all homes, both new and existing, was $138,700. Compare that to the estimated national median sales price of $216,300 for existing homes. Factoring in the national median sales price of new homes, which tend to be more expensive, would only widen the gap.

Sources: Associated Press, Real Estate Center at Texas A&M