Have you heard the news about Texas?
After decades of being famous for longhorn cattle and oil barons, the Lone Star State is undergoing seismic changes such that in 2019, the average Texan is just as likely to be a tech worker in Silicon Hills as a rancher on an open range or a roughneck on an oil derrick.
A resurgent economy and a growing job market have made Texas home to four of America’s fastest growing cities, and metropolitan areas like Dallas-Fort Worth, Austin-Round Rock, and Houston-The Woodlands-Sugar Land have exploded thanks to resurgent economies and comparatively affordable housing.
All of this growth is creating a lot of exciting opportunities for regular Texans who want to take advantage of population growth, proving that when housing prices take off, you don’t need to be a land speculator to get a big return. Here are three ways ordinary people can benefit from a booming housing market:
1. Get Your Real Estate License
The population boom has driven massive construction projects across the state, and plenty of Texans are using their local position to benefit from the influx of newcomers by becoming realtors.
With new properties going up every day, and old properties changing hands regularly, realtors have no shortage of work, and the real estate industry tends to have low barriers to entry for prospective agents: it is relatively easy to get your Texas real estate license online and once you are licensed, you can start working part time under a broker, or choose to dive right in to full-time work in the real estate industry.
2. Real Estate Crowdfunding
One of the most exciting new ways that ordinary people are getting involved in real estate deals is through real estate crowdfunding, a new approach to real estate investment that makes real estate profits more accessible to people without significant investment capital.
Real estate crowdfunding is based on the familiar model that websites like kickstarter.com have used to turn virality into a funding model. You may not be able to afford to purchase a property on your own, but through real estate crowdfunding you can join with other funders to purchase a house or apartment building, and then share in the profits from the venture.
3. Turn Your Basement Into a Rental Unit
When a housing market is booming, space becomes worth more. If you already own a house but don’t need all the room for yourself, turning your basement or second floor into a rental property can be a great way to immediately generate income from your home.
While this is a fairly hands-on strategy that will involve you essentially becoming a landlord, you will quickly earn back your investment. And even if you don’t have regular tenants, you can use the spare room to generate income through Airbnb or other apartment sharing services.
Rising housing prices tend to be a mixed blessing. A growing population brings new wealth into an area, but it also puts a strain on public services and can create uncertainty for long-time residents. With the right attitude and a bit of planning, however, regular people can turn housing booms to their own advantage, and make sure that real estate moguls aren’t the only ones making a profit.