Real Estate Market Overview 2004
Waco
Waco is located on the I-35 corridor between Dallas and Austin. Settlers who wanted to locate along the Brazos River
founded the city in 1849. In 1870, a 474-foot suspension bridge was built over the Brazos River. The toll bridge was
open to cattle and foot traffic and was the longest single span bridge in the world at that time. Waco is also home to
one of Texas' largest urban lakes, Lake Waco, which features 60 miles of shoreline. Today, the Waco Metropolitan
Statistical Area (MSA) is a growing area with a population of more than 200,000.
Quick Facts
Land Area 1,041.88 square miles
Population Density (2000) 204.9 people per square mile
Counties McLennan
Area Cities and Towns Bellmead, Bruceville, China Spring, Crawford, Eddy,
Elm Mott, Gholson, Hewitt, Lacy-Lakeview, Lorena,
Leroy, Mart, McGregor, Moody, Riesel, Robinson,
Valley Mills, Waco, West, Woodway
Real Estate Center Market Overview 2004
Waco, Texas
Table of Contents
Demographics ..............................................................................................3
Education .....................................................................................................7
Employment .................................................................................................8
Infrastructure ..............................................................................................13
Public Facilities ..........................................................................................14
Multifamily ..................................................................................................15
Housing ......................................................................................................17
Retail ..........................................................................................................20
Hotel...........................................................................................................22
Office..........................................................................................................23
Industrial ....................................................................................................24
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Real Estate Center Market Overview 2004
Waco, Texas
Waco Market Overview 2004
Demographics
Waco MSA Population
Percent
Year Population Change
1990 189,123 0.7
1991 191,878 1.5
1992 193,462 0.8
1993 196,163 1.4
1994 200,503 2.2
1995 202,692 1.1
1996 205,894 1.6
1997 207,991 1.0
1998 209,800 0.9
1999 211,548 0.8
2000 213,517 0.9
2001 215,801 1.1
2002 217,713 0.9
Source: U.S. Census Bureau
Area Cities With 10,000 or More Residents
Growth 1990-2000
City 2000 Population (percent)
Waco 113,726 9.8
Hewitt 11,085 23.4
Source: U.S. Census Bureau
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Real Estate Center Market Overview 2004
Waco, Texas
Texas Metropolitan Area Population Change, 1990 - 2002
1990 2002 Percent
Metropolitan Area Population Population Change
McAllen-Edinburg-Mission 383,545 614,474 60.2
Austin-San Marcos 846,227 1,349,291 59.4
Laredo 133,239 207,611 55.8
Dallas 2,676,248 3,743,254 39.9
Brownsville-Harlingen-San Benito 260,120 353,561 35.9
Brazoria County 191,707 257,256 34.2
Houston 3,321,911 4,420,081 33.1
Fort Worth-Arlington 1,361,034 1,802,465 32.4
Texas 16,986,335 21,779,893 28.2
Bryan-College Station 121,862 156,099 28.1
San Antonio 1,324,749 1,660,205 25.3
Killeen-Temple 255,299 319,163 25.0
Galveston-Texas City 217,396 261,219 20.2
Tyler 151,309 181,437 19.9
Sherman-Denison 95,019 113,860 19.8
Amarillo 187,514 222,915 18.9
El Paso 591,610 697,562 17.9
Waco 189,123 217,713 15.1
Victoria 74,361 84,932 14.2
Lubbock 222,636 247,574 11.2
Longview-Marshall 193,801 212,288 9.5
Corpus Christi 349,894 382,188 9.2
Texarkana 120,132 131,027 9.1
Wichita Falls 130,351 138,960 6.6
Odessa-Midland 225,545 239,981 6.4
Beaumont-Port Arthur 361,218 382,242 5.8
Abilene 119,655 125,647 5.0
San Angelo 98,458 103,018 4.6
Source: U.S. Census Bureau
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Real Estate Center Market Overview 2004
Waco, Texas
Waco MSA Projected Population
Texas State
Data Center Texas Water
Year (Scenario 0.5) Development Board
2005 220,970 -
2010 229,982 261,923
2015 239,047 -
2020 247,658 282,583
Sources: Texas State Data Center and Texas Water Development Board
Household Composition
Waco MSA Texas
Average household size (2000) 2.59 2.74
Population younger than 18 (2000, in percent) 26.6 28.2
Population 65 and older (2000, in percent) 12.9 9.9
Source: U.S. Census Bureau
Distribution by Race and Hispanic or Latino Origin
(in percent)
Waco MSA Texas
1990 2000 1990 2000
White 71.1 72.2 60.8 71.0
Black 15.4 15.2 11.7 11.5
Asian 0.7 1.1 0.3 2.7
American Indian 0.2 0.5 1.8 0.6
Other 0.1 9.2 0.1 11.7
Two or more races* - 1.8 - 2.5
Hispanic (of any race) 12.5 17.9 25.3 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
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Real Estate Center Market Overview 2004
Waco, Texas
Projected Population Growth, 2000-2020
(in percent)
Source: Texas State Data Center (Scenario 0.5)
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Real Estate Center Market Overview 2004
Waco, Texas
Waco Market Overview 2004
Education
Educational Level, Persons Age 25 and Older
2000 (in percent)
Level of Education McLennan County Texas
High school graduate 27.9 26.3
Some college, no degree 22.5 21.7
Associate's degree 7.1 5.2
Bachelor's degree 11.8 16.1
Graduate or professional degree 7.3 7.4
Source: U.S. Census Bureau, 2000 Census
Local College and University Enrollment
Fall Spring Fall
School 2002 2003 2003
Baylor University 14,047 13,124 13,825
Sources: Educational institutions
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Real Estate Center Market Overview 2004
Waco, Texas
Waco Market Overview 2004
Employment
Top Ten Employers
Employer Sector Employees
Baylor University Education 1,000+
Cargil Foods, Inc. Dressed/packed turkey products 1,000+
City of Waco Government 1,000+
H-E-B Grocery Grocery 1,000+
Hillcrest Baptist Medical Center Medical care 1,000+
L-3 Communications Integrated Systems Aircraft modification 1,000+
Providence Health Center Medical care 1,000+
Waco Independent School District Education 1,000+
Dealers Electric Supply Electric equipment and supplies 700+
MasterfoodsUSA, A Mars, Inc. Company Confectionery products 700+
Source: Waco Chamber of Commerce Feb-2004
Top Ten Private Employers
Employer Sector Employees
Baylor University Education 1,000+
Cargil Foods, Inc. Dressed/packed turkey products 1,000+
H-E-B Grocery Grocery 1,000+
Hillcrest Baptist Medical Center Medical care 1,000+
L-3 Communications Integrated Systems Aircraft modification 1,000+
Providence Health Center Medical care 1,000+
Dealers Electric Supply Electric equipment and supplies 700+
MasterfoodsUSA, A Mars, Inc. Company Confectionery Products 700+
Pilgrim's Pride Processed chicken products 700+
Examination Management Services, Inc. Insurance inspection audit 500+
ource: Waco Chamber of Commerce Feb-2004
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Real Estate Center Market Overview 2004
Waco, Texas
Employment Growth by Industry - 2003
Waco MSA Texas
Employment growth (percent) 0.0 -0.5
Unemployment rate (percent) 5.1 6.8
New jobs 0 -49,800
Employment growth by sector (percent)
Natural Resources and Mining and Construction -5.1 0.6
Construction - -3.0
Manufacturing -3.6 -5.0
Trade, Transportation and Utilities -2.8 -1.8
Information 0 -5.8
Financial Activities 1.6 0.9
Professional and Business Services 2.4 -1.1
Educational and Health Services 3.7 3.3
Leisure and Hospitality 4.6 1.2
Government 0.6 1.3
Total Nonfarm 0 -0.5
Source: Texas Workforce Commission and U.S. Bureau of Labor Statistics
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Real Estate Center Market Overview 2004
Waco, Texas
Texas Metropolitan Area Employment Change, 1990 - 2003
1990 2003 Percent
Metropolitan Area Employment Employment Change
Austin-San Marcos 454,618 746,750 64.3
Laredo 48,766 77,065 58.0
McAllen-Edinburg-Mission 128,560 197,870 53.9
Brownsville-Harlingen-San Benito 90,866 131,457 44.7
Bryan-College Station 58,292 82,368 41.3
San Antonio 587,550 796,235 35.5
Killeen-Temple 87,724 117,801 34.3
Tyler 70,970 93,561 31.8
Dallas 1,467,668 1,916,607 30.6
Texas 8,071,312 10,284,203 27.4
Fort Worth-Arlington 721,875 915,919 26.9
Houston 1,720,152 2,180,719 26.8
Victoria 34,648 43,652 26.0
Amarillo 92,967 113,051 21.6
El Paso 229,358 274,926 19.9
Lubbock 107,823 128,854 19.5
Waco 86,347 102,310 18.5
Longview-Marshall 86,048 100,952 17.3
Odessa-Midland 104,401 120,374 15.3
Corpus Christi 150,142 172,705 15.0
San Angelo 43,587 49,798 14.2
Brazoria County 93,552 105,320 12.6
Abilene 52,389 58,513 11.7
Sherman-Denison 43,804 48,866 11.6
Wichita Falls 56,897 62,812 10.4
Galveston-Texas City 105,423 114,327 8.4
Texarkana 51,575 55,658 7.9
Beaumont-Port Arthur 157,435 167,915 6.7
Source: U.S. Bureau of Labor Statistics and The Real Estate Center
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Real Estate Center Market Overview 2004
Waco, Texas
Waco MSA Employment
Percent
Year Employment Change
1990 86,347 -
1991 86,904 0.6
1992 88,209 1.5
1993 89,686 1.7
1994 92,997 3.7
1995 94,869 2.0
1996 94,534 -0.4
1997 95,241 0.7
1998 96,124 0.9
1999 98,350 2.3
2000 98,601 0.3
2001 98,107 -0.5
2002 99,021 0.9
2003 102,310 3.3
Source: U.S. Bureau of Labor Statistics
Annual Percent Change in Waco MSA Employment
Source: U.S. Bureau of Labor Statistics
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Real Estate Center Market Overview 2004
Waco, Texas
Waco MSA Unemployment Rate
(in percent)
Source: U.S. Bureau of Labor Statistics
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Real Estate Center Market Overview 2004
Waco, Texas
Waco Market Overview 2004
Infrastructure
Waco Airline Boardings
Airport 1998 1999 2000 2001 2002 2003
Enplaned 59,034 62,786 62,119 60,557 50,278 56,482
Deplaned - - - - 49,037 54,536
Total - - - - 99,315 111,018
Source: Waco Regional Airport
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Real Estate Center Market Overview 2004
Waco, Texas
Waco Market Overview 2004
Public Facilities
Waco City Public Facilities Building Permits
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Real Estate Center Market Overview 2004
Waco, Texas
Waco Market Overview 2004
Multifamily
Waco Apartment Statistics 2003
Texas Metro
Waco Average
Average rent per square foot $0.68 $0.79
Average rent for units built since 2000 $0.88 $0.91
Average occupancy (percent) 94.8 92.1
Average occupancy for units built since 2000 (percent) 95.5 90.8
Source: Apartment MarketData Research
Waco MSA Multifamily Building Permits
(5+ Family Bldg. Permits in units)
Source: U.S. Census Bureau
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Real Estate Center Market Overview 2004
Waco, Texas
Waco City Multifamily Building Permits
Waco City Building Permit Office
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Real Estate Center Market Overview 2004
Waco, Texas
Waco Market Overview 2004
Housing
Housing Affordability - Fourth Quarter 2003
Percent of Households THAI for
That Can Afford First-time
Median-priced Home THAI* Homebuyers
Waco MSA 58 1.22 1.03
Texas MLS Total 54 1.06 0.92
U.S. Total 55 1.06 0.77
Source: Real Estate Center at Texas A&M University
* 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.
Price Distribution of MLS Homes Sold, Waco Area, 2003 (in percent)
Price Range 2003
$29,999 or less 6.0
30,000 - 39,999 3.7
40,000 - 49,999 4.2
50,000 - 59,999 6.1
60,000 - 69,999 8.1
70,000 - 79,999 6.8
80,000 - 89,999 7.7
90,000 - 99,999 8.1
100,000 - 119,999 12.9
120,000 - 139,999 10.7
140,000 - 159,999 8.1
160,000 - 179,999 6.1
180,000 - 199,999 3.7
200,000 - 249,999 3.9
250,000 - 299,999 1.2
300,000 - 399,999 2.0
400,000 - 499,999 0.5
500,000 and more 0.4
Source: Real Estate Center at Texas A&M University
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Real Estate Center Market Overview 2004
Waco, Texas
Property Tax Rates, 2003
Tax Rate
per $100
Taxing Entity Valuation
City of Waco $0.70
Waco ISD 1.52
McLennan Community College 0.13
McLennan County 0.43
Total $2.78
Source: McLennan County Appraisal District
Waco MSA Single-family Building Permits
(in units)
Source: U.S. Census Bureau
Average Sales Price of Single-family Home, Waco Area
Source: Real Estate Center at Texas A&M University
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Real Estate Center Market Overview 2004
Waco, Texas
Single-family Home Sales Volume, Waco Area
(Number of Units)
Source: Real Estate Center at Texas A&M University
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Real Estate Center Market Overview 2004
Waco, Texas
Waco Market Overview 2004
Retail
Waco MSA Gross Retail Sales
Year Total Sales Sales per Capita
1990 $1,407,951,815 $7,445
1991 1,450,493,128 7,559
1992 1,553,581,885 8,030
1993 1,678,854,331 8,558
1994 1,814,512,300 9,050
1995 2,030,098,684 10,016
1996 2,080,949,139 10,107
1997 2,150,987,297 10,342
1998 2,214,286,560 10,554
1999 2,310,075,586 10,920
2000 2,467,140,564 11,555
2001 2,516,139,442 11,660
2002 2,532,376,602 11,632
State Average 2002: $12,143
Source: Texas Comptroller's Office Mar 2004
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Real Estate Center Market Overview 2004
Waco, Texas
Waco City Retail Building Permits
Waco City Building Permit Office
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Real Estate Center Market Overview 2004
Waco, Texas
Waco Market Overview 2004
Hotel
Hotel* Occupancy and Rental Rates
Waco Texas
2000
Rooms (000) 2.6 296.8
Average daily rental rate $52.54 $71.56
Occupancy rate (percent) 61.1 59.3
2001
Rooms (000) 2.7 307.1
Average daily rental rate $54.97 $70.27
Occupancy rate (percent) 61.0 57.3
2002
Rooms (000) 2.7 314.3
Average daily rental rate $56.30 $70.11
Occupancy rate (percent) 60.4 55.4
2003
Rooms (000) 2.8 320.8
Average daily rental rate $56.43 $68.78
Occupancy rate (percent) 62.9 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.
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Real Estate Center Market Overview 2004
Waco, Texas
Waco Market Overview 2004
Office
Waco City Office Building Permits
Waco City Building Permit Office
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Real Estate Center Market Overview 2004
Waco, Texas
Waco Market Overview 2004
Industrial
Waco City Industrial Building Permits
Waco City Building Permit Office
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Real Estate Center Market Overview 2004
Waco, 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
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