Austin, Texas and Area Economy Booming

Housing analysts, developers and builders say a low supply of vacant lots, tight credit markets and higher development and building fees are pushing the new-home market farther north, away from San Antonio and into New Braunfels.

“There are just so many people moving out this way,” said Bernice Bouler, a Cibolo resident. “I’ve seen it change in the last two years.”

The Austin-area economy did better creating jobs than initially believed last year and in January outpaced the state’s job growth rate, according to figures released Friday by the Texas Workforce Commission.

Forbes based its rankings on data from the Bureau of Labor Statistics    from November 2000 to January 2012, including factors such as recent growth trends, mid-term growth, long-term growth and the region’s momentum.

Austin “has logged strong growth in manufacturing, technology-related employment and business services,” Forbes wrote.

After Iowa, Texas is the No. 2 ranked state for overall business friendliness, earning an A+. The state scored an A+, A or A- in nine of the 12 ranking categories. It received one B+, a C+ and a C.

In a survey of 6,000 small businesses nationwide, Austin scored an A+ for overall friendliness. The city received an A+ for ease of starting a business; health and safety regulations; employment, labor and hiring; tax code; and zoning. It earned an A in the ranking categories of overall regulations; licensing; training programs; and environmental regulations.