Curious about Killeen, Texas’s booming small business scene? Discover the factors driving unprecedented growth and what it means for entrepreneurs by 2025.
Killeen, Texas, is projected to experience notable small business growth by 2025, supported by an expected population increase to 157,547 and a 17.94% rise in sales tax revenue over the past four years. Additionally, high-income households have surged by 146.2% since 2021, indicating robust economic potential. The city has revitalized its downtown, with business occupancy rates increasing from 30% to nearly 80%, welcoming 35 new small businesses in one year. Enhanced infrastructure, including the expansion of major roadways and installation of technology training programs, further supports this growth trajectory, positioning Killeen favorably for entrepreneurs seeking opportunities.
Killeen, Texas is on track for important demographic changes that will shape its small business landscape by 2025. The city is experiencing notable population diversity, driven largely by millennial migration. In 2022 alone, approximately 16,853 millennials moved to Killeen, accounting for 10.8% of the total population. This influx of young adults brings a fresh perspective and varied consumer preferences, which local businesses must consider to thrive in an evolving market.
By 2025, Killeen's population is projected to reach 157,547, reflecting a 6% increase from 2020. The growth will not be uniform across zip codes; for instance, zip code 76549 is expected to grow considerably, from 53,490 in 2020 to 61,692 by 2025. This demographic shift indicates a changing customer base that small businesses need to understand and cater to effectively. Additionally, population trends analyzed to support local organizations will further assist businesses in making informed decisions.
Additionally, high-income households, defined as those earning $200,000 or more, have surged by 146.2% since 2021, rising from 1.3% to 3.2% of the population in just one year. This trend further emphasizes the need for businesses to adapt to the purchasing power of a more affluent demographic, which may drive demand for higher-quality products and services.
As Killeen's population continues to diversify and expand, small businesses must stay attuned to these demographic trends to remain competitive and relevant in a rapidly changing economic environment. Understanding the implications of population diversity and millennial migration will be essential for future success.
Driving forward with optimism, Killeen's economic growth projections for 2025 look promising, fueled by a combination of factors that include population expansion and infrastructure development. The city's population rose by 2.4% from 2020 to 2021, reaching 156,261, which creates a favorable environment for business investment and market opportunities. With the designation of Interstate 14 and the proximity to Fort Hood, Killeen is poised for significant economic activity.
Key drivers of economic growth include:
As Killeen prepares for these transformations, the projected increase in property tax revenues by $5.3 million (10.45%) in FY 2025 also underscores the economic uplift. Despite potential decreases in sales tax revenues, the overall revenue structure remains robust due to anticipated increases in service charges. These developments collectively enhance Killeen's economic landscape, fostering a thriving environment for small businesses and ensuring continued growth in the years ahead.
Amidst Killeen's economic growth, the labor market is evolving rapidly, driven by a strong demand for tech professionals. Over the last five years, the tech sector has expanded by 25%, creating significant opportunities for roles such as cloud architects, cybersecurity analysts, and security engineers. Salaries in these positions are competitive, with cloud architects earning up to $132,225 and cybersecurity analysts reaching $117,000. This trend reflects a broader shift towards technology-focused employment, as AI and machine learning roles also gain traction.
As companies increasingly adopt remote work policies, the need for skilled professionals in fields like cybersecurity is projected to surge by 33% by 2030. The local economy's emphasis on cloud and IoT security highlights the importance of skills training, which is being actively addressed through partnerships with educational institutions. For instance, Central Texas College offers hands-on bootcamp training in cybersecurity, allowing individuals to develop essential skills in high demand, such as AWS, Azure, and Python. Additionally, the rising demand for cloud architects and security engineers underscores the urgency for specialized training programs that cater to these emerging roles.
Moreover, the data science market is expected to grow by 50% through 2030, with salaries ranging from $75,000 to $148,000. Key skills for these positions include R, SQL, and data visualization tools like Tableau or Power BI. As Killeen's unemployment rate remains low at 4.70%, the job market is characterized by a vibrant demand for tech talent, making skills training an essential component of workforce development in the region.
As Killeen invests in its future, the downtown revitalization efforts are transforming the area into a vibrant hub for business and community engagement. These initiatives prioritize historic preservation while promoting economic growth through adaptive reuse of existing structures. By focusing on enhancing public spaces and fostering community involvement, Killeen is creating an inviting environment for both residents and visitors.
Key strategies include:
The impact of these revitalization efforts is significant. Business occupancy rates have soared from 30% to nearly 80% within a year, with 35 new small businesses opening and approximately 90 jobs added to the local economy. Additionally, the city expects to collect $28.4 million in new sales tax revenue over 17 years, alongside an annual increase in municipal revenues estimated at $12 million.
Community engagement plays a fundamental role in these developments, with over 1,000 volunteer hours logged in the program's first year. Initiatives like the Shop Downtown program and feedback integration into the Killeen 2040 Moving Forward Plan further demonstrate the community's investment in this revitalization journey. Overall, Killeen's downtown transformation not only enhances its historic charm but also fosters economic prosperity and community participation.
Killeen's infrastructure and development initiatives are poised to greatly enhance the city's connectivity and economic importance. Significant infrastructure improvements are underway, including the expansion of Interstate 35 from four to six or eight lanes, which will accommodate the average of 85,000 vehicles that pass through daily. Additionally, the construction of one-way service roads, bridge turnarounds, and direct-connect bridges will also streamline traffic flow. Moreover, the expansion of US 190 from four to six lanes, along with its designation as Interstate 14, will bolster transportation efficiency between Copperas Cove and Belton.
On the digital front, Killeen is set to experience a broadband expansion through Metronet's multimillion-dollar investment in a 100% fiber optic network. This initiative aims to connect the first customers by fall 2024, positioning Killeen as a Certified Gigabit City. The deployment of multi-gigabit infrastructure will not only enhance internet connectivity for residents but also support local businesses in leveraging technology for growth.
These infrastructure advancements are essential for the region, as they support Fort Cavazos and its significant military presence, which includes approximately 55,000 troops and 278,000 military families. Additionally, the Greater Killeen Chamber of Commerce continues to facilitate economic development, promoting local job creation and the recruitment of new businesses. Overall, these initiatives reflect Killeen's commitment to fostering a robust economic environment that benefits both residents and local enterprises.
To sum up, as Killeen, Texas, prepares for a projected 15% growth in small businesses by 2025, the city stands at a pivotal moment akin to a seedling breaking through the soil. With favorable demographic trends, economic growth, and revitalization efforts, the environment is ripe for entrepreneurship. By investing in infrastructure and addressing labor market changes, Killeen can cultivate a flourishing business ecosystem, ensuring that local entrepreneurs not only survive but thrive in the coming years.
