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the Federal Reserve raised interest rates higher than many expected. “From then on, there have been a lot of people sitting on the side- lines waiting to see what happens,” he said. Home sales dropped after the June in ation report. From then until Dec. 13, active listings on the west side of the city increased by 86%, while pending contracts fell to 35%, according to data collected by Phil- lips. On the east side, active listings rose 118%, and pending contracts fell 37%. In 2022, closings were down 7.8% year over year, per ABoR data. The decline in home sales is largely attributed to the rise in mortgage inter- est rates, which often mirrors in ation, according to Phillips. “This rising interest rate is a tool by the Fed to try to soften in ation, and when that does soften, we will likely see the interest rates coming back down at some point,” he said. “The real question is, ‘When is that going to happen?’” Between the spring and fall of 2022, interest rates went from 3.5% to 7%, driving the average monthly house payment up to $2,765—an increase of 45.15%, according to Zonda. However, Phillips said the latest action from the Federal Reserve indicates interest rates could start to fall. After the Federal Reserve raised the rates an additional 0.75% over four consecutive months, in Decem- ber the hikes were dialed back to an increase of 0.5%. Phillips said indus- try leaders will pay attention to not only these economic factors in u- encing the market, but also how the public responds to them. “Right now, sellers are willing to negotiate,” he said. “That may change dramatically if interest rates go back down.” Bustling business With homes continuing to be built and sold in the area, Georgetown now has 1 million people living within com- muting distance—de ned as the area spanning South Austin to Temple—City Manager David Morgan said. This has turned the region into an attractive place for companies looking to expand, helping the city meet a goal of having its residents work where they live. “That’s a big plus with the tra c congestion and all the di erent prob- lems that come with rapid growth,” said David Porter, executive director
of the Williamson County Economic Development Partnership. “If you get employers to come to your area, to your city, then that means more of your residents can stay in George- town to work. So we’re no longer a bedroom community.” CelLink Corp. and GAF Energy are just two of the companies moving to Georgetown. CelLink—a company that makes wiring systems for elec- tric vehicles and battery packs—leased 294,000 square feet at the Titan Gate- way35 Commerce Center. GAF Energy, which specializes in solar roo ng, is constructing a 450,000-square-foot manufacturing facility on the south- east corner of I-35 and SE Inner Loop. In the meantime, city o cials said Class A industrial space has grown to 7 million square feet in Georgetown. Cities facing growth often feel pressure to turn industrial sites into residential properties, Porter said. “One thing that’s really lacking in the United States right now [is] a large number of industrial sites,” he said. “So the cities, counties and states that maintain their indus- trial sites are going to be ahead of the game.” City Council continues approving industrial development. In October, council signed o on rezoning 56.73 acres at 2990 N. I-35. Owned by Fidelis, the property will include three build- ings with 500,000 square feet of ex o ce space and a distribution center. For 20 years, the real estate company has owned, developed and managed large-scale shopping centers—a major- ity of which are in Houston. Porter said the city is in good shape to continue pursuing similar e orts. “Some of the cities in Williamson County are landlocked, meaning they just don’t have the land to develop industrial sites, but Georgetown isn’t,” Porter said. “So they have the capabil- ity of keeping those sites that are very precious as industrial sites.” Homegrown workers More homes, more companies and more available jobs mean more students residing within GISD. Like many Central Texas school districts, GISD is considered a fast-growth district, on pace to reach a student enrollment of more than 20,000 in the next 10 years, up from 13,164 in the 2022-23 school year. To accommodate for the growth in students, GISD has plans to open three
PROJECTING POPULATION Georgetown is projecting the city's population could grow to more than 100,000 residents by 2028. Population projection scenarios
Assumes growth rate similar to Austin metro
Assumes growth rate similar to Williamson County
Assumes growth rate similar to the city of Georgetown
120,000
28.7% 44.4%
100,000
80,000
21.8%
60,000
0
2027 2028 2029 2030
2022 2023 2024 2025 2026
SOURCE: CITY OF GEORGETOWN COMMUNITY IMPACT
RAMIFICATIONS OF RAPID GROWTH With available land to build, Georgetown's growing population puts pressure on the housing market, schools, economy and infrastructure to keep up.
Housing More than 1,600 single-family homes are under construction, and more than 2,900 multifamily units are under construction within Georgetown ISD.
Students From the 2018-19 school year to the 2022-23 school year, the number of students attending Georgetown ISD increased from 11,759 to 13,164. Enrollment projections show the district expects to add more than 3,100 students in the next ve years. GISD has three facilities under construction and is considering another bond in 2024. Industry and jobs From 2017-23, Georgetown’s workforce labor shed—the area from which local employers pull in workers— grew from 700,000 people to 1 million. This area encompasses South Austin to Temple. Infrastructure When a city’s population grows, local government leaders must plan to expand services to meet the needs of these new residents, including water capacity and more larger roads. Georgetown is updating plans that outline how the city hopes to grow.
SOURCES: CITY OF GEORGETOWN, GEORGETOWN ISD, WILLIAMSON COUNTY ECONOMIC DEVELOPMENT PARTNERSHIP, ZONDA COMMUNITY IMPACT
“Housing normally slows when we get toward the winter months, and then housing typically surges in the spring months as most families try to move over the summer,” he said. Last summer, U.S. in ation reached a 40-year high at 9.1%. This hit the housing market “like a shockwave,” said Russ Phillips, a Georgetown real estate agent at Russ Phillips Team, as
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Bob Templeton, vice president of the school district segment at Zonda, said homebuilders with a stockpile of completed houses and no buyers will start o ering incentives and dis- counts to get them o the market. First, though, a slowdown in home sales is likely to continue.
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