Texas

from TG - Spring 2023

by Texas Real Estate Research Center

of Taxes

NewsTalk Texas is our online daily dose of real estate news and transactions covering all Texas markets. It’s convenient, portable, and searchable by Metropolitan Statistical Area, topic, and keyword.

Helping Texans make the best real estate decisions since 1971.

Tierra Grande Magazine Texas Real Estate Research Center

2 | Come Fly With Me

Drone Laws and Regulations

Look, up in the sky! It’s a bird! It’s a plane! It’s a . . . drone? They’re everywhere these days, and whether they’re being used for business or recreational purposes, rules apply.

By Rusty Adams

8 | Commission Mythology 101

18 | Industrial Space Race

Texas Market Overview

Fasten your seat belts. Demand for Industrial real estate has taken off in recent years, with the latest metrics showing an especially healthy market in Texas’ largest metros. By Daniel

Oney

What Does Homeowners Insurance Really Cover?

Not all homeowners insurance policies are created equal, and they may not always cover what you think they do. Read this quick overview to learn more (and have a copy of your own insurance policy handy when you do).

By Richard Rudolph

Austin Home Price Illusion

At a glance, home sales data imply existing homes cost more to buy than new homes in the Austin area. However, a closer look reveals there’s more than meets the eye.

By Adam

Perdue, Weiling Yan, and Reece Neathery

Executive Director, GARY W. MALER

Operations Director, PAMELA CANON

Research Director, DANIEL ONEY

Senior Editor, BRYAN POPE

Associate Editor, KAMMY BAUMANN

Creative Manager, ROBERT P. BEALS II

Graphic Specialist/Photographer, JP BEATO III

Graphic Designer III, ALDEN DeMOSS

Communications Advisor, DAVID S. JONES

Circulation Manager, MARK BAUMANN

Lithography, RR DONNELLEY, HOUSTON

26 | Deep in the Heart of Taxes

Kerri Lewis

The concept of a real estate commission seems simple enough, right? But you’d be surprised how many people misunderstand how they actually work. This article debunks some of the most common “myth-conceptions.” By

10 | Deconstructing Construction Costs

The rising cost of labor and materials is exacerbating the state’s already serious housing affordability problem. Here’s its effect on home prices and the number of people who can afford to buy.

By Clare Losey

14 | A Towering Task

Logistical Challenges of Officeto-Residential Conversions

Reduce, reuse, and recycle are the “three Rs” of protecting the environment. Nowadays, some commercial property owners are ﬁnding new uses for old ofﬁce buildings, adding a fourth R: residential. By Harold D. Hunt and Bryan Gilliland

Estate taxes and property taxes can take a bite out of your wallet, but there are ways to minimize how big a bite they take. Here’s what you need to know. By

William D. Elliott

28 Practically Speaking

Real Estate Questions Answered

Now that you’ve passed Commission Mythology 101, broaden your knowledge base even further with this look at commissions in cooperative transactions. By

Kerri Lewis and Avis Wukasch

29 Texas Property Taxes: Highs and Lows

Ever wonder how your property tax rates compare with those in neighboring counties? In observance of tax season, TRERC’s research team has put together this map illustrating how those rates vary across the state.

ADVISORY COMMITTEE: Doug Jennings, Fort Worth, chairman; Doug Foster, San Antonio, vice chairman; Troy C. Alley, Jr., Arlington; Russell Cain, Port Lavaca; Vicki Fullerton, The Woodlands; Patrick Geddes, Dallas; Besa Martin, Boerne; Rebecca “Becky” Vajdak, Temple; and Barbara Russell, Denton, ex-officio representing the Texas Real Estate Commission.

TG (ISSN 1070-0234) is published quarterly by the Texas Real Estate Research Center at Texas A&M University, College Station, Texas 77843-2115. Telephone: 979-845-2031.

VIEWS EXPRESSED are those of the authors and do not imply endorsement by the Texas Real Estate Research Center, Division of Academic and Strategic Collaborations, or Texas A&M University. The Texas A&M University System serves people of all ages, regardless of socioeconomic level, race, color, sex, religion, disability, or national origin. Nothing in this publication should be construed as legal or tax advice. For specific advice, consult an attorney and/or a tax professional.

PHOTOGRAPHY/ILLUSTRATIONS: JP Beato III, pp. 1 (top), 8, 14-15, 16-17; Robert Beals II, pp. 1 (bottom), 2-3, 4, 6-7, 10-11, 23, 24, 25; Center files, pp. 5, 10-11; Alden DeMoss, pp. 18, 21, 26-27.