Lubbock's 10% sales tax increase helps housing market - KCBD NewsChannel 11 Lubbock

Lubbock's 10% sales tax increase helps housing market


The state comptroller released data this week showing that sales tax revenue in Lubbock has increased 10% since this time last year. This means people in the city are spending more money and one local industry is seeing the benefits.

"Demand for houses is going up probably 25 or 50% this year. We're almost back to some of our norms from 2006, 2007 and 2008 and if things stay like they're going we'll surpass those shortly," said George McMahan. He is the president of the West Texas Home Builders Association and says this demand for homes is having a trickle-down effect that is further benefiting Lubbock's economy.

"The truck salesmen, the lumber salesmen, the plumbers, the electricians, all of those people have jobs that didn't have jobs and are making good money right now," he said.

McMahan claims that the Lubbock housing market moves in a 4 to 5 year cycle and believes this is the beginning of a positive five year run. He says pent up demand, low interest rates and more jobs in Lubbock have spurred the current boom. According to McMahan, every piece of material that goes into the house produces sales tax revenue.

"The concrete that the builder buys to pour the foundation with, the lumber, the shingles, you can see from all of the construction how much goes into a new home."

McMahan also believes Lubbock's mostly moderate weather has some effect as well.

"Lubbock's a good place to invest, great place to live. We were talking earlier about how we have dust storms but we don't have the huge snow storms like Denver, we don't have the smog like Southern California, we don't have the high humidity, bugs and spiders like Houston and Central Texas so Lubbock's a great place to be."

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