The primary reasons that make Lubbock an outstanding real estate investment market are tied to its booming local economy comprised of a diversified profile of in-demand industries in addition to a well-documented history of year-over-year appreciation and a low barrier to entry.
Let’s take a closer look at the Lubbock economy, which is responsible for the area’s extremely low unemployment rate and consistent demand for housing spurred by the continual influx of skilled, high-income workers willing to pay premium prices for the right property. A main component of the economic power in the area is the healthcare industry, with more than 17,000 workers and $53 million in salaries making a dramatically positive impact on the quality of life in Lubbock. Education also plays a major role and drives growth, real estate development and the creation of new jobs. From an investor’s perspective, higher education institutions are great market features as it means sustainable demand from incoming students for rental housing. Lubbock is home to Texas Tech University, Texas Tech Health Sciences, Lubbock Christian and Wayland University (TTUHSC). The main takeaway is that real estate investors will have little trouble either filling vacancies in their investment properties or re-selling renovated homes for a health return on investment (ROI).
One of the unique characteristics that has garnered the Lubbock Market a lot of attention in recent years is its tremendous resiliency in comparison to global and national market fluctuations. Even when these larger markets take a plunge, Lubbock has historically remained relatively stable. Take the 2008 market crash for example. While the majority of major metropolitan markets took a nosedive amidst the infamous housing bubble, Lubbock actually saw a slight uptick in terms of appreciation and transactional activity. Over the past 90 years, Lubbock has recorded an average of between 2-5% appreciation. For investors, this means that Lubbock is a safe and profitable investment opportunity. The ability to tap into a market with assets that produce reliable, strong cash flow that is almost guaranteed to incrementally increase with time is extremely hard to come by.
Getting your investment journey off the ground in the Lubbock real estate market is comparatively easy to more high-profile areas. The reasonable upfront costs mean a lower financial hurdle to enter the market, and there are a number of viable properties on the market. Multiple studies have shown the annualized returns of a typical $250,000 real estate investment property in Lubbock are much higher than the same dollar amount spent in the Los Angeles, New York or San Francisco markets. Maximizing your ROI is essential for successful investing, and the market dynamics of the Lubbock area make it easy to do so.
