Amarillo, Texas, has a history of resisting economic downswings. For example, during the Dust Bowl of the 1930s while other markets were suffering from severe drought, Amarillo became a tourist destination thanks to a central location at the junction of U.S. Routes 60, 87, 287, and 66. In more recent history, the city's most recent economic downturn occurred in the early 1990s and set the stage for a growth trend extending into and beyond the present day. The ongoing nature of this growth is due, in large part, to 90s era deterioration in the downtown metro area that has now become a focal point for redevelopment and reinvestment for public and private organizations.
"Amarillo is a tertiary market, but that gives it the unique advantage of having an economic environment much like that of Dallas-Fort Worth but without the compression on CAP rates," said Merrill Kaliser, shareholder in and founder of Kaliser & Associates, an Amarillo law firm, and founder and CEO of Axiom Workforce Fund LLC, a Reg D 506(c) fund focused on sourcing, analyzing, purchasing, and operating multifamily assets. Axiom is active in the Amarillo market, Kaliser said, "because the city is under the radar but is growing rapidly with a diversified employer base."
"The Amarillo market provides a fairly steady stream of opportunities for real estate investors," said Auction.com vice president of market economics Daren Blomquist. He added, "Median sales prices in the Amarillo market are more of the slow-and-steady-wins the race variety," noting that the Amarillo residential market did not demonstrate "the sharp drop around the Great Recession that we see in most markets."