Retirees boost Hill Country economy

       The beautiful hills which define the Texas Hill Country and attract so many tourists and retirees today were for many years a major obstacle to the region's growth and prosperity. For years after east and south Texas were settled, the Hill Country remained a safe haven for fierce Comanches, and for eight decades after the first settlers arrived in 1846, most of the Hill Country was isolated by the rugged terrain. Also, the thin, rocky soil and scarcity of level fields made farming difficult throughout most of the Hill Country; those who stayed and succeeded did so, for the most part, by long hours of hard work. Even among the most diligent, survival was more common than prosperity.

       While explorers and travelers have always marveled at the region's natural beauty, the first real "tourists" arrived shortly after the railroads finally penetrated the geological obstacle course in the late 1800s. Lampasas attracted so many visitors to its "healthful springs" in the 1880s that it became known far and wide as "the Saratoga of the South." Kingsland, located in a beautiful valley at the confluence of the Llano and the Colorado Rivers, became a tourist destination with camps and hotels in the 1890s. Landa Park in New Braunfels became a tourist destination soon after the turn of the century; Kerrville became a center of dude ranches and youth camps beginning in the early 1920s, and two attractions in San Marcos (Aquarena Springs and Wonder World) attracted thousands of tourists as the automobile began to dominate American life.

         But it was after World War II, as the American economy boomed and better highways eased access to the formerly inhospitable region, that tourism became more important to the Hill Country's economy. For one thing, widespread droughts, modern farming methods and youth migration to the cities caused the population to shrink dramatically outside the county seats all across the Hill Country. At the same time,  as workers reached retirement age in the colder and higher-priced northern states, more and more of them began to consider a move to the southern states, where temperatures were warmer and the cost of living lower. During the late '30s to the early '50s, a series of dams created a chain of "Highland Lakes" along the Colorado River, providing a natural area for leisure and tourism. Another dam, completed on the Guadalupe River in 1964, created Canyon Lake just north of San Antonio. Retirees from Texas cities began to consider the Texas Hill Country as the perfect place to spend their golden years.

       Ten years ago, Frederick A. Day, of Southwest Texas State University, and Jon M. Bartlett, of the U.S. Bureau of the Census, used data from the previous three census years to explore the economic impact of retirees in the Texas Hill Country. Because the census notes only those who have moved within the previous five years, the second halves of the '70s, '80s and '90s were used in the study.

       The first fact that jumps out from the study is that 18 of the 21 "non-metropolitan" counties in the Texas Hill Country (the fast-growing counties along I-35 were excluded from the study) were designated as retirement destinations (Texas was ranked #4 among the 50 states for over-60 in-migration during the 1980s; 78 of its 254 counties are considered retirement destinations), making the Hill Country one of the nation's top retirement spots. Contributing factors include warm weather, attractive landscapes, recreational opportunities, proximity to large cities and relatively low cost of living (although property values have risen with the increasing popularity of the Hill Country).

       The effect was greatest in counties with relatively easy access to big-city amenities (but not too close to the cities); the six counties with the highest rates of elderly in-migration were: Bandera, Blanco, Burnet, Gillespie, Kerr and Llano, all basically around an hour's drive of Austin or San Antonio. The other common factor was proximity to water; Llano County has the second-highest median age in the whole country, but most of its incoming retirees have settled in lakefront communities in the southeast corner, within relatively easy commuting distance to Austin. Gillespie and Kerr Counties are a little farther from the cities, but cultural amenities and healthcare are available in their county seats: Fredericksburg and Kerrville.

       The purpose of the study was to determine what effect, if any, retirees had on the local economy; the answers were very interesting. First of all, the incomes of migrant retirees are approximately 80 percent higher than the average older household in the U.S. Secondly, the vast majority (90 percent, in some areas) of migrant retirees have a new home built for their retirement, rather than buying an existing home. Those two factors account for a boom in the construction industry in counties that have a high rate of retiree in-migration. Per capita income growth in retirement destinations outpaced other rural counties at a significant rate.

       Other industries showing substantial gains in retirement communities were banking, investments and retail services. The study estimated that one job was created for every two retirement households, but that many of the jobs created were low-paying service-sector jobs, and that job creation did not translate into lower unemployment rates, since low-skilled workers would often follow the retirees in search of a job. One significant exception to that rule was the healthcare sector; the study found that retirement destinations have more and better-equipped healthcare facilities than their "average" counterparts. This chicken-and-egg relationship provides better-paying jobs and, in turn, attracts more retirees.

       The amenities that come with an increased population of prosperous retirees have helped the region add to its tourism appeal, and some speak of retirement as America's "Newest Growth Industry." It is remarkable that the circumstances and conditions which decimated the Texas Hill Country's economy in the mid-20th century have now put the region in the perfect position to benefit from this nationwide trend. Retirees do not compete for jobs, do not pollute and do not overload local school systems. At the same time, they bring all manner of talents and experience, time to volunteer in civic activities, and ready cash to spend with local businesses. Many of the new tourist attractions and unique businesses in the Texas Hill Country are the result of newcomers, successful  in their big-city business careers, pursuing an imaginative dream in the beauty of the Texas Hill Country.

       The irony of history reminds me of the old-timer in West Virginia who told his newly-arrived neighbor, "You call this Paradise Mountain; we always called it Poverty Hill." While some longtime residents of the Texas Hill Country must wonder at the flood of retirees, it is hard to argue with the benefits that they bring with them. Kerrville and Horseshoe Bay in particular are examples of retirement-based economies which benefit all the surrounding area, and it is hard to imagine that such cultural, healthcare and retail centers as Kerrville and Marble Falls would exist without the influence of those who chose the Texas Hill Country as their retirement destination. If you are a newcomer who has recently retired, we all say, "Welcome to the Texas Hill Country! Together, we can make it even better!"

By John Hallowell

John Hallowell is the past editor of several Hill Country publications. He has been exploring the Texas Hill Country for almost 20 years.