Municipal Utility Districts in Texas are undergoing strong growth on heels of a housing rebound and streamlined regulation of land development and bond finance. In this Market Insight, Bluefield water experts analyze drivers and inhibitors for the Texas Municipal utility market.
Texas requires US $3.5 billion of water and wastewater CAPEX investment annually for the next ten years — and municipal utility districts could represent a significant portion of this investment to meet growing demand. A reinvigorated housing market will further drive infrastructure buildout, including pipes, plants, pumps, and advanced water metering solutions.
This market insight is available to Municipal Infrastructure Insight clients. For more state-by-state analysis of infrastructure needs, see Bluefield’s new report: US Municipal Water Infrastructure: Utility Strategies & CAPEX Forecasts, 2016-2025.
Bluefield Takeaways
- Texas housing starts to rebound, increasing CAPEX needs
- Proliferation of MUD water infrastructure is financed by ‘dirt bonds’
- City annexation remains a viable long-term alternative to MUDs, which has begun in some counties already.