Lubbock Economic Analysis

Lubbock’s economy is steady with residential construction outperforming 2024 sales and less commercial construction than we saw in 2024.

Both new and used car sales were up, and retail sales were up.

Lubbock continues to benefit from a strong trade base, with retail sales up 9% from the same period last year and YTD sales up 3%. New car sales increased 5% and used car sales rose 3%.

Tourism remains strong, with higher hotel sales driven by Texas Tech football weekends, though airline boardings are down 5%.

We have not received updated job numbers from the state due to delays caused by the federal government shutdown. Without official data and with ICE-related concerns, the job market may be weaker than it appears.

With many new jobs created by Leprino Foods, residential building permits have outperformed 2024 in 9 out of 11 months, while other construction has declined slightly YTD.

Residential construction continues to outpace last year, with 103 starts compared to 88. However, commercial building activity has slowed YTD. Median house prices are up 3% this month, though the homes sold were less expensive. With interest rates coming down, there is some pent-up demand for increased commercial construction.

Energy markets were mixed. Oil prices fell 20%, while natural gas prices rose 26%. Oil rig activity remained steady.

Agriculture improved thanks to better cotton yields. Wheat prices dropped 10%, corn 1%, and cotton 7%. Fat cattle prices increased 21%, but milk prices declined 15%. Cotton Harvesting is winding down and improved yields from last year’s crop.