DATA POINTS

www.datapoints.org SEPTEMBER 2013

Most Recent Monthly Data Current

www.capcog.org
Previous Month MoM YoY

VITAL SIGNS
The unemployment rate dropped modestly in July, but was very strong on a year-over-year basis Both Single-family and Multi-family building permits rose sharply in July, adding a total of 1,493 new units to the metropolitan area The number of patents awarded in the month of August continued a downward trend, falling by over 10% from the same point last year The regions corporate sector among publicly traded companies continues to show fairly tepid growth as measured by indexed market cap

Unemployment Rate Employment Growth

(July) (July) (July)

5.6 -110 908 585

5.8 2,449 789

-3.4% -12.5% 0.0% 15.1% 2.8% 27.5% 59.8% 6.1%

Bldg. Permits Single-Family Bldg. Permits Multifamily Sales Tax Receipts Patents Awarded
(July) (August)

(July)

183 219.7% 15.9%

$33,702,012 $29,086,741 229 265

-13.6% -10.2%

CAPTEX Stock Index I

CAPTEX Stock Index II

(Sep. 1)
(Sep. 1)

411.32
197.24

425.85
199.89

-3.41% 13.65%
-1.38% -0.85%

Dive deeper into the data at DataPoints.org for sources, notes and other information.

IN FOCUS: Tracking Residential Building Growth in the Capital Area

While the rest of the nation continues efforts to reinforce a recovery in the housing market working to cycle through the foreclosed casualties of the housing crisis and reinforce home sales in the face of interest rates that are low, but finally on the rise the capital area has been faced with a different challenge. Under the constant pressure created by a steady stream of population growth (at a rate of 3.5% compounded annually since 2010) and notable shifts in resident preferences, the market in the capital area has been challenged to keep up and adapt.
In 2012, the total number of construction permits for residential projects equaled 19,873 units, with 42.7% being single family units and the remaining 57.3% being multifamily units (including duplexes, triplexes, and larger multifamily buildings). Monthly data to-date for 2013 suggest that growth is continuing at a similarly strong pace.

Total Residential Units Permitted in 2012

Source: CAPCOG Economic Development Program

Average Annual Residential Units Permitted (20102012) per 1,000 2010 Households

So, where in the capital area is the growth taking place? Unsurprisingly, new residential construction is taking place in and around existing population centers, with Travis County taking the bulk of the new units at 12,482 (nearly 63% of all new units permitted) and Williamson and Hays County following at 3,700 and 3,327 respectively. Residential growth is continuing to locate near the I-35 corridor which may lead many to conclude that the region is going to continue to look much as it has in recent memory. And while there is a certain amount of truth to that statement, a closer look at the data shows how residential construction is affecting different areas in different ways. When comparing the number of new units
Source: CAPCOG Economic Development Program

DATA POINTS
www.datapoints.org SEPTEMBER 2013 www.capcog.org

IN FOCUS: Tracking Residential Building Growth in the Capital Area (continued)

permitted in 2012 to the number of total households living in the area in 2010, it is easy to see that even small counties are being transformed. These trends demonstrate the increasing role that Hays County is playing in the regional growth picture, while rural Llano County experiences outsized growth in high-value properties driven primarily by purchases by retirees. While Travis county continues to grow, the nature of that growth is changing, with more infill and a heavier focus on multifamily than in the past (driven by a large number of rental and condo projects and greater preference for walkable urban neighborhoods near employment centers and entertainment districts). Even as the growth rate changes in the years ahead, it will be important to monitor the character of that growth and its ability to keep up with changing needs and preferences.

2010-2012 % Change in MF-SF Ratio

Source: CAPCOG Economic Development Program

SPOTLIGHT ON: Hays County

Each month, Data Points will highlight economic development in one of the capital areas 10 counties.

The Science, Technology and Advanced Research (STAR) Park

One of the fastest growing counties in the nation, Hays County is discovering new opportunities that had not previously been available to it and is leveraging community assets that will enable it to support a stronger and more diversified economy. Perhaps the countys most important asset, Texas State University, is now home to a research and commercialization center and incubator that was made possible in part by a grant by the U.S. Economic Development Administration. The Science, Technology and Advanced Research (STAR) Park is a full 38 acres and home to facilities dedicated to supporting the development and commercialization of new technologies. Through an incubator program that brings academic talent and research together with private entrepreneurs, Texas State University and communities in Hays County are placing a heavy emphasis on the support of innovation and new business creation as a cornerstone of economic development efforts. For more, visit www.txstate.edu/ocir/STAR-Park.

SOURCE: Texas State University

SOURCE: Texas State University

ABOUT CAPCOG ECONOMIC DEVELOPMENT

CAPCOGs Economic Development Program works closely with cities, counties, chambers of commerce and economic development corporations of the Texas capital area, providing education, training and expert assistance. Services include providing in-depth economic analysis, managing special projects related to regional planning and economic strategy and helping communities devise new strategies for improved competitiveness. To discuss specific projects or available services, contact Program Manager Michael Hennig at mhennig@capcog.org.