Market Reports Tyler[828]

Real Estate Market Overview 2004 Tyler The Tyler Metropolitan Statistical Area (MSA), located between Dallas and Shreveport along I-20, is a manufacturing, health care, education and retail center for East Texas. Tyler ranked third nationally on a list of "Best small places for Businesses and Careers" published by Forbes magazine and the Milken Institute in 2002. Tyler is also considered "The Rose Capital of America" and sponsors an annual Azalea and Spring Flower Trail in March and April that draws thousands of tourists. Quick Facts Land Area 928.38 square miles Population Density (2000) 188 people per square mile Counties Smith Area Cities and Towns Arp, Big Sandy, Garden Valley, Lindale, Mount Sylvan, Tyler, Whitehouse, Winona Real Estate Center Market Overview 2004 Tyler, Texas Table of Contents Demographics .................................................................................... 3 Education ........................................................................................... 7 Employment ....................................................................................... 8 Economy .......................................................................................... 13 Infrastructure .................................................................................... 14 Multifamily ........................................................................................ 15 Housing ............................................................................................ 16 Hotel ................................................................................................. 19 Office ................................................................................................ 20 -2- Real Estate Center Market Overview 2004 Tyler, Texas Tyler Market Overview 2004 Demographics Tyler MSA Population Percent Year Population Change 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 151,309 153,705 155,336 158,717 160,898 163,440 166,087 168,531 171,033 172,758 174,706 178,010 181,437 0.3 1.6 1.1 2.2 1.4 1.6 1.6 1.5 1.5 1.0 1.1 1.9 1.9 Source: U.S. Census Bureau -3- Real Estate Center Market Overview 2004 Tyler, Texas Texas Metropolitan Area Population Change, 1990 - 2002 Metropolitan Area McAllen-Edinburg-Mission Austin-San Marcos Laredo Dallas Brownsville-Harlingen-San Benito Brazoria County Houston Fort Worth-Arlington Texas Bryan-College Station San Antonio Killeen-Temple Galveston-Texas City Tyler Sherman-Denison Amarillo El Paso Waco Victoria Lubbock Longview-Marshall Corpus Christi Texarkana Wichita Falls Odessa-Midland Beaumont-Port Arthur Abilene San Angelo 1990 2002 Percent Population Population Change 383,545 846,227 133,239 2,676,248 260,120 191,707 3,321,911 1,361,034 16,986,335 121,862 1,324,749 255,299 217,396 151,309 95,019 187,514 591,610 189,123 74,361 222,636 193,801 349,894 120,132 130,351 225,545 361,218 119,655 98,458 Source: U.S. Census Bureau 614,474 1,349,291 207,611 3,743,254 353,561 257,256 4,420,081 1,802,465 21,779,893 156,099 1,660,205 319,163 261,219 181,437 113,860 222,915 697,562 217,713 84,932 247,574 212,288 382,188 131,027 138,960 239,981 382,242 125,647 103,018 60.2 59.4 55.8 39.9 35.9 34.2 33.1 32.4 28.2 28.1 25.3 25.0 20.2 19.9 19.8 18.9 17.9 15.1 14.2 11.2 9.5 9.2 9.1 6.6 6.4 5.8 5.0 4.6 -4- Real Estate Center Market Overview 2004 Tyler, Texas Tyler MSA Projected Population Texas State Texas Water Data Center Year (Scenario 0.5) Development Board 2005 2010 2015 2020 181,404 188,462 195,944 203,729 201,028 227,931 Sources: Texas State Data Center and Texas Water Development Board Household Composition Tyler MSA Texas Average household size (2000) Population younger than 18 (2000, in percent) Population 65 and older (2000, in percent) Source: U.S. Census Bureau 2.59 26.6 14.1 2.74 28.2 9.9 Distribution by Race and Hispanic or Latino Origin (in percent) Tyler MSA Texas 1990 2000 1990 2000 White Black Asian American Indian Other Two or more races* Hispanic (of any race) 72.6 20.7 0.4 0.4 0.0 5.9 72.6 19.1 0.7 0.4 5.7 1.4 11.2 60.8 11.7 0.3 1.8 0.1 25.3 71.0 11.5 2.7 0.6 11.7 2.5 32.0 * 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 -5- Real Estate Center Market Overview 2004 Tyler, Texas Projected Population Growth, 2000-2020 (in percent) Source: Texas State Data Center (Scenario 0.5) -6- Real Estate Center Market Overview 2004 Tyler, Texas Tyler Market Overview 2004 Education Educational Level, Persons Age 25 and Older 2000 (in percent) Level of Education High school graduate Some college, no degree Associate's degree Bachelor's degree Graduate or professional degree Smith County Texas 24.8 25.4 7.4 15.3 7.2 26.3 21.7 5.2 16.1 7.4 Source: U.S. Census Bureau, 2000 Census Local College and University Enrollment School Tyler Junior College U.T. Tyler Spring Fall Spring Fall Spring 2002 2002 2003 2003 2004 - 8,451 3,807 4,265 8,578 8,977 4,242 4,783 9,113* - Sources: Educational institutions and Texas Higher Education Coordinating Board *Estimated -7- Real Estate Center Market Overview 2004 Tyler, Texas Tyler Market Overview 2004 Employment Top Ten Employers Employer Trinity-Mother Frances Hospital East Texas Medical Center Brookshire Grocery Company Tyler Independent School District The Trane Company University of Texas Health Center at Tyler Kelly-Springfield Tire Company Tyler Pipe Carrier Corporation Target Distribution Center Sector Health care Health care Grocery distribution Education Heating-cooling unit manufacturing Health care & research Tire manufacturing Cast iron pipe, iron fittings Commercial air conditioners Retail distribution Employees 3,384 3,214 2,576 2,228 2,000 1,247 1,206 1,100 1,000 929 Source: Tyler Economic Development Council Aug-2003 Top Ten Private Employers Employer Trinity-Mother Frances Hospital East Texas Medical Center Brookshire Grocery Company The Trane Company Kelly-Springfield Tire Company Tyler Pipe Carrier Corporation Target Distribution Center Howe-Baker Engineers Southside Bank Sector Health care Health care Grocery distribution Heating-cooling unit manufacturing Tire manufacturing Cast iron pipe, iron fittings Commercial air conditioners Retail distribution Engineering/Contractor Bank Source: Tyler Economic Development Council Aug-2003 Employees 3,384 3,214 2,576 2,000 1,206 1,100 1,000 929 695 565 -8- Real Estate Center Market Overview 2004 Tyler, Texas Employment Growth by Industry - 2003 Tyler MSA Employment growth (percent) Unemployment rate (percent) New jobs Employment growth by sector (percent) Natural Resources and Mining Construction Manufacturing Trade, Transportation and Utilities Information Financial Activities Professional and Business Services Educational and Health Services Leisure and Hospitality Government Total Nonfarm 0 2.7 -5.9 -2.7 0 -6.8 0 5.7 5.3 1.7 0.2 0.6 -3.0 -5.0 -1.8 -5.8 0.9 -1.1 3.3 1.2 1.3 -0.5 0.2 4.9 Texas -0.5 6.8 200 -49,800 Source: Texas Workforce Commission and U.S. Bureau of Labor Statistics -9- Real Estate Center Market Overview 2004 Tyler, Texas Texas Metropolitan Area Employment Change, 1990 - 2003 Metropolitan Area Austin-San Marcos Laredo McAllen-Edinburg-Mission Brownsville-Harlingen-San Benito Bryan-College Station San Antonio Killeen-Temple Tyler Dallas Texas Fort Worth-Arlington Houston Victoria Amarillo El Paso Lubbock Waco Longview-Marshall Odessa-Midland Corpus Christi San Angelo Brazoria County Abilene Sherman-Denison Wichita Falls Galveston-Texas City Texarkana Beaumont-Port Arthur 1990 2003 Percent Employment Employment Change 454,618 48,766 128,560 90,866 58,292 587,550 87,724 70,970 1,467,668 8,071,312 721,875 1,720,152 34,648 92,967 229,358 107,823 86,347 86,048 104,401 150,142 43,587 93,552 52,389 43,804 56,897 105,423 51,575 157,435 746,750 77,065 197,870 131,457 82,368 796,235 117,801 93,561 1,916,607 10,284,203 915,919 2,180,719 43,652 113,051 274,926 128,854 102,310 100,952 120,374 172,705 49,798 105,320 58,513 48,866 62,812 114,327 55,658 167,915 64.3 58.0 53.9 44.7 41.3 35.5 34.3 31.8 30.6 27.4 26.9 26.8 26.0 21.6 19.9 19.5 18.5 17.3 15.3 15.0 14.2 12.6 11.7 11.6 10.4 8.4 7.9 6.7 Source: U.S. Bureau of Labor Statistics and The Real Estate Center - 10 - Real Estate Center Market Overview 2004 Tyler, Texas Tyler MSA Employment Percent Year Employment Change 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 70,970 72,005 73,441 74,884 78,045 80,335 80,930 82,970 84,935 85,991 87,577 88,189 90,410 93,561 1.5 2.0 2.0 4.2 2.9 0.7 2.5 2.4 1.2 2.5 0.9 2.4 2.7 Source: U.S. Bureau of Labor Statistics Annual Percent Change in Tyler MSA Employment Source: U.S. Bureau of Labor Statistics - 11 - Real Estate Center Market Overview 2004 Tyler, Texas Tyler MSA Unemployment Rate (in percent) Source: U.S. Bureau of Labor Statistics - 12 - Real Estate Center Market Overview 2004 Tyler, Texas Tyler Market Overview 2004 Economy Tyler MSA Gross Retail Sales Year Total Sales Sales per Capita $8,498 8,794 9,400 10,222 11,259 11,686 11,919 12,084 12,949 14,540 14,805 13,927 13,782 1990 $1,285,862,178 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 1,351,609,159 1,460,219,931 1,622,335,938 1,811,577,598 1,910,000,610 1,979,648,405 2,036,581,314 2,214,711,557 2,511,976,041 2,586,577,685 2,479,095,532 2,500,531,818 State Average 2002: $12,143 Source: Texas Comptroller's Office Mar 2004 - 13 - Real Estate Center Market Overview 2004 Tyler, Texas Tyler Market Overview 2004 Infrastructure Tyler Airline Boardings Airport Enplaned Deplaned Total 1998 72,616 69,009 1999 77,795 73,041 2000 74,563 70,402 2001 63,834 58,916 2002 55,578 54,530 2003 60,284 58,773 141,625 150,836 144,965 122,750 110,108 119,057 Source: Tyler Pounds Field Airport - 14 - Real Estate Center Market Overview 2004 Tyler, Texas Tyler Market Overview 2004 Multifamily Tyler Apartment Statistics 2003 Tyler Average rent per square foot Average rent for units built since 2000 Average occupancy (percent) Average occupancy for units built since 2000 (percent) Source: Apartment MarketData Research Texas Metro Average $0.79 $0.91 92.1 90.8 $0.61 $0.48 94.6 97.1 Tyler MSA Multifamily Building Permits (5+ Family Bldg. Permits in units) Source: U.S. Census Bureau - 15 - Real Estate Center Market Overview 2004 Tyler, Texas Tyler Market Overview 2004 Housing Housing Affordability - Fourth Quarter 2003 Percent of Households THAI for That Can Afford First-time Median-priced Home THAI* Homebuyers Tyler MSA Texas MLS Total U.S. Total 57 54 55 1.11 1.06 1.06 0.91 0.92 0.77 * The THAI is the ratio of median household income to the income required to buy the median priced home using currently available mortgage financing. Standard financing is a 30-year loan covering 80 percent of the cost of the home. A THAI of 1.00 indicates that the median household income is just enough to qualify for a loan sufficient to purchase the median-priced home. Source: Real Estate Center at Texas A&M University Price Distribution of MLS Homes Sold, Tyler Area, 2003 (in percent) Price Range $29,999 or less 30,000 - 39,999 40,000 - 49,999 50,000 - 59,999 60,000 - 69,999 70,000 - 79,999 80,000 - 89,999 90,000 - 99,999 100,000 - 119,999 120,000 - 139,999 140,000 - 159,999 160,000 - 179,999 180,000 - 199,999 200,000 - 249,999 250,000 - 299,999 300,000 - 399,999 400,000 - 499,999 500,000 and more 1998 1999 2000 2001 2002 2003 5.3 4.3 6.1 9.3 8.2 8.6 10.0 7.1 10.0 9.1 5.6 4.3 2.8 3.8 3.8 0.9 0.8 0.2 6.4 4.3 5.9 8.7 9.6 7.0 9.4 6.3 11.5 7.9 6.1 4.2 3.3 4.3 2.7 1.3 0.7 0.3 5.0 4.2 5.6 6.9 8.8 8.6 8.0 7.4 10.5 8.8 6.0 5.6 3.9 5.4 2.2 2.2 0.5 0.6 3.8 2.8 5.5 5.4 7.1 8.6 8.3 7.3 12.0 10.4 7.2 5.5 3.7 5.3 3.2 2.6 0.9 0.5 3.9 3.1 4.6 6.0 7.5 7.8 8.3 7.1 12.1 10.2 6.9 5.3 4.4 4.8 3.2 3.4 1.3 0.2 2.9 3.1 2.6 4.5 5.7 6.7 7.6 7.9 13.9 11.3 8.6 5.9 4.7 5.9 3.4 3.9 1.1 0.5 Source: Real Estate Center at Texas A&M University - 16 - Real Estate Center Market Overview 2004 Tyler, Texas Home Sales, Tyler Smith County Total Sales 2002 2,076 2003* 2,113 Average Sales Price $124,400 $133,700 *Dec-not available Source: Real Estate Center at Texas A&M University Property Tax Rates, 2003 Tax Rate per $100 Valuation $0.02 0.25 0.12 1.47 $1.87 Source: Smith County Appraisal District Taxing Entity City of Tyler Smith County Tyler Junior College Tyler Independent School District Total Tyler MSA Single-family Building Permits (in units) Source: U.S. Census Bureau - 17 - Real Estate Center Market Overview 2004 Tyler, Texas Average Sales Price of Single-family Home, Tyler MSA Area Source: Real Estate Center at Texas A&M University Single-family Home Sales Volume, Tyler Area (Number of Units) Source: Real Estate Center at Texas A&M University - 18 - Real Estate Center Market Overview 2004 Tyler, Texas Tyler Market Overview 2004 Hotel Hotel* Occupancy and Rental Rates Tyler 2000 Rooms (000) Average daily rental rate Occupancy rate (percent) 2001 Rooms (000) Average daily rental rate Occupancy rate (percent) 2002 Rooms (000) Average daily rental rate Occupancy rate (percent) 2003 Rooms (000) Average daily rental rate Occupancy rate (percent) 2.2 320.8 2.1 314.3 2.0 307.1 2.0 296.8 Texas $53.46 $71.56 55.3 59.3 $54.91 $70.27 58.3 57.3 $55.88 $70.11 56.5 55.4 $55.18 $68.78 56.3 54.3 Source: Office of the Governor Economic Development and Tourism and Source Strategies, Inc. of San Antonio *Only properties exceeding $16,600 in the current quarter are included; those units below $16,600 only result in 1.5% of the total state revenues, and have been excluded from this database. - 19 - Real Estate Center Market Overview 2004 Tyler, Texas Tyler Market Overview 2004 Office Tyler Office Market - Total Market Statistics September 2003 Number of buildings Total square feet Total vacant square feet Overall occupancy rate (percent) Average annual rental rate per sq. ft. Source: Burns-Noble 43 2,009,701 220,048 89.1 $11.61 Tyler Office Market - CBD/Downtown Market September 2003 Number of buildings Total square feet Total vacant square feet Overall occupancy rate (percent) Average annual rental rate per sq. ft. Source: Burns-Noble 14 791,360 104,902 86.8 $10.30 Tyler Office Market - Suburban/South Tyler Market September 2003 Number of buildings Total square feet Total vacant square feet Overall occupancy rate (percent) Average annual rental rate per sq. ft. Source: Burns-Noble 29 1,218,341 115,146 90.6 $12.19 - 20 - Real Estate Center Market Overview 2004 Tyler, Texas Office Market Trends Rates & Occupancy (Sept. to Sept.) Source: Burns & Noble - 21 - Real Estate Center Market Overview 2004 Tyler, Texas This annual report is created free of charge by the Real Estate Center at Texas A&M University. We strive to provide the most accurate, up-to-date, and insightful data to paint a detailed picture of Texas’ Metropolitan Statistical Area’s. The Center also provides numerous publications, resources, and data on building permits, employment, population, and home sales at http://recenter.tamu.edu. Report compiled by: Administrative Coordinator Edith Craig Research Analysts Isilay Civan Blake Lacy Real Estate Center, 2115 TAMU, College Station, TX 77843-2115 Phone: 979.845.2031 | Fax: 979.845.0460 - 22 -