4 Ways Local Developments Improve Texas Property Values
The Land Up Dirt to Dollars Series
Tesla, Oracle, Samsung - more and more businesses are making the move to the area and it’s increasing Central Texas land values. Central Texas offers a high quality of life for employees, affordable commercial properties for sale, business friendly economies for entrepreneurs and enterprises - and the list goes on. If you were to Google “quickly growing areas in the country”, you’ll probably find listed: Hays County, Caldwell County, Williamson County, Travis County, and/or Comal County.
But if you live in Central Texas or are dreaming of buying land in Texas, this may make you hesitant - after all, didn’t you move out of the city in search of peaceful, country living? How will big businesses coming to town impact your Central Texas property?
That’s the beauty of Central Texas: you can have your cake and eat it too.
Texas is BIG. Even with many quickly growing areas and a booming business economy, there is still plenty of land for sale in Texas - and ample opportunity to spread out with no neighbors in sight, while still benefitting from the local boom.
Sure, things like another burger joint, parking lot, or whatever new amenity may seem incremental, but buying land in Texas near these developments is a great real estate strategy. Big and small, these updates can impact your property’s value for the better:
4 Ways Developments Increase Texas Property Values
1. Enhanced Infrastructure
One of the most direct ways local developments can boost property values is through improved infrastructure. Investments in roads, bridges, public transportation, and utilities not only make an area more accessible, but also enhance the overall quality of life. Here's how improved infrastructure can affect property values:
Increased Accessibility: Upgraded transportation networks and road systems make it easier for residents to commute to work, schools, and other essential destinations.
Reduced Commute Times: Reduced traffic congestion and shorter commute times can make living in a particular area more appealing. This can lead to higher demand for properties in that location.
Improved Services: Investments in utilities, such as water supply and sewage systems, can lead to more reliable services.
2. Enhanced Amenities and Services
Local developments often include the creation or improvement of amenities and services that enhance the quality of life for residents. These can range from parks and recreational facilities to healthcare centers and shopping districts. Here's how these enhancements can impact property values:
Quality of Life: Access to parks, green spaces, and recreational facilities can significantly improve residents' quality of life.
Convenience: Proximity to shopping centers, restaurants, and entertainment options can make a property more desirable.
Healthcare Facilities: Access to quality healthcare facilities is a crucial factor, and communities with improved healthcare services often see an increase in property values.
Road construction makes us cry for two reasons: one, from panic when nobody lets us merge and two, tears of joy when it’s done and nearby land is worth more.
3. Economic Growth
Local developments can also drive economic growth in an area. This can be through the creation of new businesses, job opportunities, and increased commercial activity. Economic growth can lead to several positive outcomes for property values:
Increased Demand: As more businesses move into the area, there may be an influx of new residents seeking employment - and more importantly, a place to live.
Rising Incomes: Economic growth often results in rising incomes for residents. This, in turn, can lead to higher home prices as people have more purchasing power.
Business Investment: Local businesses are more likely to invest in an area with thriving local developments. This can lead to increased demand for commercial properties.
4. Reputation and Perception
Local developments can enhance the reputation and perception of an area. When an area is known for its improvements, safety, and overall appeal, it can attract more homebuyers and investors. Positive perception can significantly influence property values:
Safety and Security: Reduced crime rates and improved safety measures can make an area more attractive.
Desirability: An area with a positive reputation is more likely to be considered desirable, which can result in increased demand and higher prices.
Investing in Texas real estate = more ice cream shops.
9 Factors That Determine How Much a New Development Will Impact Texas Property Values
The extent to which a local development can improve property values can vary widely based on several factors. While looking for land for sale in the Texas Hill Country near new developments, keep in mind that the degree of improvement depends on the following key factors:
Type of Development: Infrastructure improvements, such as new roads, bridges, and public transportation, tend to have a more direct and substantial impact on property values. Enhancements like parks, shopping centers, and recreational facilities can also boost values, but the effect may be more nuanced.
Location: Properties in close proximity to the development are likely to experience a more significant increase in value compared to those farther away. For example, a property located right next to a new subway station will likely see a more substantial value increase than one several blocks away.
Market Conditions: In a hot seller's market with high buyer demand and low property supply, any local development may have a stronger impact on property values. In a buyer's market with oversupply, the effect may be less pronounced.
Timing: Timing matters. Properties located in areas where development is already underway or is expected to begin soon may experience an immediate increase in value. Conversely, the impact may be delayed if the development is still in the planning stages.
Quality of Development: High-quality developments that enhance the overall quality of life in the community, such as well-designed parks or top-notch schools, are more likely to drive up property values.
Local Economic Factors: If the development leads to increased job opportunities, economic growth, and rising incomes, property values are more likely to rise.
Community Perception: If the development is well-received and positively perceived by the community, it can have a stronger impact on property values.
Supply and Demand: If the development leads to increased demand for housing in the area and there is limited supply, property values are likely to rise more substantially.
Property Specifics: A well-maintained property in good condition is more likely to benefit from local development than one in poor condition.
TBD Pendergrass St. is a great example of buying land as an investment - Lockhart in Caldwell County is a quickly growing area, and this property is zoned for multifamily use.
Have You Seen New Developments in Your Central Texas Area?
If you answered “yes”, it may be time to see how much your property is now worth! Even if new local developments aren’t knocking at your back door, having proximity to these updates can still make all the difference in your property’s value.
Lucky for you, we know all about selling land in Texas and what’s happening in local real estate market. And we’ll do you one better - as your neighborhood land, farm and ranch, and commercial experts, we can help you discover how much your property is worth, FREE. Contact us today for a free price analysis before selling your Central Texas land!