It’s said that everything’s bigger in Texas. And it’s easy to see why with the state being the largest of the contiguous states in the United States. But size isn’t the only thing that Texas has going for it. More and more businesses are deciding to put down roots in the Lone Star State, which has led to growth in many industries. One industry that continues to do well in Texas is the lending industry. Whether you’re looking to finance a car or get a mortgage, there’s a lender with your name on it. Here are some reasons why the lending industry is thriving in Texas.
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1. Population Growth
One reason that lenders are doing so well in Texas has to do with the incredible growth rates the state is experiencing with regard to its population. It’s been estimated that more than 1,000 people move to the state every day, which works out to about 500,000 people every year choosing to make the state their home. That makes Texas the second most moved-to state in the country.
Many of the people moving to Texas are from states like California, states that might be beautiful and desirable to live in but that are nonetheless pricing people out due to their high cost of living. Texas’s affordability and strong business sectors have ensured that there’s a steady supply of new residents.
2. Strong Housing Market
Another reason that the lending industry is doing well in Texas has to do with the strength of the state’s housing market. More people moving to Texas means that more people will be in need of homes and mortgage lenders. The housing market in Texas is blowing up with no signs of it slowing down anytime soon. As it stands, home values in Texas are about 20 percent higher than they were in 2021. Here are a few reasons as to what played a role in Texas’s booming housing market:
- Job Opportunities: As of 2021, Houston ranks third in US metro areas with the most Fortune 500 companies. Notable companies include Oracle, Apple, and Tesla.
- Coronavirus: Since the outbreak of Covid-19, more businesses have let go of office buildings and offered work-from-home options for their employees. With that, people have used this opportunity to maintain their normal salaries all while taking this newfound freedom by relocating to cities that are not only more affordable but also have warm weather as well.
- Cost of Living: Coastal states are notorious for making residents migrate South simply because it’s more affordable. And while it may be one’s dream to live oceanside, Texas still provides the great American Dream of a beautiful suburban home where you can get to know your neighbors.
The housing market is just one of many reasons why Texas is such a thriving state. If you ever get the chance to look at Texas real estate, you’ll see exactly why.
3. Car-Centric Cities
Texas is a state that’s known for its immense size and its large cities. Indeed, Houston, the fourth largest city in the country, is located in Texas. With the state being nearly 270,000 square miles, it’s not hard to understand why car ownership in the state is high. In addition, Texas’s cities have the dubious distinction of being dense places where public transit is sometimes difficult to come by.
This has made owning a vehicle a necessity in many parts of Texas. And lenders are more than happy to provide the throngs of newcomers and Texas natives with vehicles required to get around their city and state.
4. Ease of Payday Lending
Texas is also one of the states that have made getting a payday loan incredibly easy. Texas payday loans have become an increasingly popular way for people to pay for things like bills and other necessities when they don’t have the money on hand. Texas is only second to California when it comes to the number of payday lenders in the state. Lenders have also found that there are fewer regulations in Texas with respect to payday loans.
5. Large Student Population
Texas’s lending industry is also buoyed by student loans. In fact, student loans in Texas rank third behind mortgage debt and auto debt in the state. Considering the size of the state, it’s no surprise that Texas has the largest number of colleges and universities in the country. Although the state does not lead the country in student loans, for the 2019-20 academic year, nearly 60 percent of four-year college students had loans in their fourth year.
Many people and businesses are deciding that Texas is the state they want to live in and do business in. As a result, many industries are thriving in Texas, including the ever-expanding lending industry. The lending industry is doing particularly well in Texas due to the fact that the state continues to grow rapidly. Other factors contributing to the growth of the industry are a strong housing market, car-centric cities, the ease of payday lending, and a large student population. Everything really is bigger in Texas, including the lending industry.