Week 52 | 2024
Austin, Texas
Employment and Unemployment:
Austin's unemployment rate remained steady at 3.4% in July 2024, below both the state (4.1%) and national (4.3%) averages.
Housing Market:
In October 2024, Austin's median home price increased by 1.0%. Year-over-year, home prices fell by 1.1% in the metro area but rose by 1.5% in Texas. Home inventories remained stable at 3.8 months, indicating a balanced housing market.
Retail Sales:
As of September 2024, the three-month moving average of Austin's real, inflation-adjusted retail sales tax collections decreased by 0.9%, while the state's collections grew by 0.5%. Year-over-year, metro retail sales tax collections were up 0.7%, with Texas' collections rising by 1.0%.
Data Center Growth:
Austin continues to emerge as a hub for data centers, with significant investments contributing to the city's economic landscape. These facilities add value to the tax rolls due to substantial site investments.
United States
Stock Market Performance:
The S&P 500 has risen over 24% in 2024, driven primarily by the technology sector. Major tech companies like Nvidia, Apple, Microsoft, Amazon, and Alphabet have significantly contributed to this growth.
Economic Growth:
U.S. economic growth in Q3 2024 was revised upward to 3.1%, propelled by robust consumer spending and a surge in exports, highlighting the economy's resilience amid global headwinds.
Federal Reserve Policy:
The Federal Reserve cut the benchmark interest rate by 25 basis points in December 2024, signaling a slower pace of rate cuts in 2025 than previously expected. This decision led to a modest rise in U.S. bond yields and a strengthening of the U.S. dollar against other major currencies.
Global Economy
IMF Growth Projections:
The International Monetary Fund (IMF) projects the global growth rate to remain at 3.2% for 2024, slightly decreasing to 3.1% in the medium term. The U.S. economy is expected to remain a key driver of global growth, with strong consumer spending contributing to this outlook.
Market Inflows:
Global equity funds saw significant inflows of $34.38 billion in the week leading up to December 25, 2024, following favorable U.S. inflation reports and the avoidance of a government shutdown. This marks a turnaround from net sales of $36.84 billion in the previous week.
Currency and Bond Markets:
The U.S. dollar has reached near a two-year high against a basket of currencies, influenced by the Federal Reserve's rate outlook. U.S. Treasury yields have also climbed, with the 10-year yield rising to 4.613% and the two-year yield to 4.3489%.
Please note that economic conditions are subject to rapid changes. It's advisable to consult real-time financial news sources and official economic reports for the most current information.
In the News…
Austin, Texas
Population Changes:
Recent estimates indicate that Fort Worth has surpassed Austin to become the fourth-largest city in Texas, placing Austin fifth in the state.
Film Industry Incentives:
Texas lawmakers approved a record $200 million in funding for the state’s film incentive program in 2023. As the legislative session approaches on January 14, 2025, industry stakeholders are keen to see how much funding will be allocated for the next budget cycle, which could significantly impact the number of major movies and TV shows filmed in the state.
Tesla's Autonomous Vehicle Discussions:
Tesla is in early talks with Austin city authorities regarding implementing its autonomous vehicle technology. Since May, a Tesla representative has been engaging with the city's autonomous vehicle task force to discuss vehicle safety standards. Tesla recently showcased a prototype of the "Cybercab," a driverless vehicle, with plans to introduce an unsupervised version of its driver-assistance technology in California and Texas next year.
United States
Homelessness Increase:
The United States has experienced a record 18% rise in homelessness over the past year. Factors contributing to this increase include unaffordable housing, high inflation, systemic issues, natural disasters, and rising immigration.
Legal Actions on Transgender Athletes:
Texas Attorney General Ken Paxton has filed a lawsuit against the NCAA to prevent transgender athletes from participating in women's sports, alleging that it misleads fans and violates Texas consumer protection laws. The suit seeks an injunction to stop the NCAA from allowing transgender athletes to compete in women's sports within Texas or to require the NCAA to stop marketing these events as "women's" sports if they involve transgender athletes.
International
Middle East Conflict:
Israel's Defense Minister, Israel Katz, has confirmed the assassination of Hamas leader Ismail Haniyeh and has issued threats against Yemen's Houthi leadership. This marks Israel's first acknowledgment of Haniyeh's death, which occurred in an explosion in Iran. Katz cited Israel's previous actions against leaders of Hamas, Hezbollah, and other Iranian-backed groups.
Automotive Industry Merger:
Honda and Nissan have announced plans for a $54 billion merger, which would create the world's third-largest automaker by sales. The definitive agreement is anticipated by June 2026, driven by a need for global competitiveness amid rapid industry changes. Mitsubishi Motors, already allied with Nissan, may join these talks.
Please note that news developments are rapidly evolving. For the most current information, it's advisable to consult real-time news sources.
Recent Developments in Austin and Beyond
Tesla in talks with city of Austin over self-driving technology, Bloomberg News reports
Texas sues NCAA in latest push to block transgender athletes in women's sports
Middle East latest: Israeli's defense minister acknowledges it killed Hamas leader
Stock market today: Wall Street slips as technology stocks drag on the market
Global equity funds regain inflows on US inflation relief
Trump's return could extend US stocks' dominance over global rivals