The Central Appraisal District tells us that house values are up 7.6 percent this year.
While the U.S. Census Bureau estimates tell us that population growth has flatlined since 2012.
Here, I made a chart to help you understand the data the Census Bureau gave us:
Note that El Paso has grown less than one half of one percent in four of the last five years.
Economics tells us that prices are determined by supply and demand. And you would expect, since people live in houses, that demand for housing would follow changes in population. Obviously, since our population growth has flatlined, yet house prices have increased, something else must be going on here. But what?
Are family sizes dwindling? Are children leaving the nest but not the city?
Is it speculation? Are Kool Aid aficionados buying houses in anticipation of a population boom that’s not happening?
Or are people who don’t live here buying houses? As investments, or summer homes, perhaps. I understand that mountains and beaches are unbearably temperate in the summer.
Or maybe there are some shenanigans going on.