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We believe that staying informed about local and regional economic trends is essential—for our clients, our communities, and the way we do business. Our Quarterly Report offers a snapshot of the economic pulse across Central Texas and beyond. Here's what we're seeing and what it might mean for businesses and families in our region.

Key Takeaways

• Economic activity is stable but fragile, with continued inflation pressures.
• Housing inventory is rising, creating opportunities for buyers and builders.
• Commercial loan demand is increasing, while consumer and mortgage lending are slower.
• Local development remains strong, positioning Central Texas for continued long-term growth.

Here’s what’s happening:

• Labor Market: Employment levels are flat, with cautious hiring and modest wage growth.
• Prices: Continued moderate price increases, driven by manufacturing and tariff impacts.
• Manufacturing: Production is steady but orders are down; outlooks remain cautious.
• Retail: Sales declined again in June, with supply chain disruptions increasing.
• Services: Modest growth in some sectors, but transportation and warehousing remain weak.
• Real Estate: Housing demand has softened, while inventory rises and affordability challenges persist.
• Financial Services: Commercial loan demand is growing while mortgage and consumer loans dip.
• Energy: Activity declined slightly with drilling slowing despite stable production.
• Agriculture: Cattle and beef prices remain strong, but many crop prices are unprofitable.

Central Texas Housing Market

In the Austin-Round Rock-San Marcos area, closed sales edged up 0.5% while median prices held steady at $450,000. Inventory is increasing, providing more options for buyers as the market stabilizes.

Local Project Highlights

• Austin: New mixed-use development on S. Congress Ave. and a 240-unit apartment complex on Menchaca Rd.
• Round Rock: Amazon’s 223,000-sf distribution facility moves forward.
• Temple: Meta resumes its $800M data center project.
• Bastrop & Kyle: Significant residential and mixed-use developments are underway.

Ready to Navigate This Market?

Understanding where the local economy is heading helps you plan your next move confidently, whether you’re looking to grow your business, invest in property, or plan your next financial step.

Reach out to a CNB lender to discuss how these trends impact your business or personal goals. We’re here to help you build your future with local insight and a personal approach.

For more details, check out the full report here.