Market Snapshot, Q3 2023

 
 

Market Overview

Since market research on both the global and national scales is easily attainable with a simple Google search, beginning with this edition, we will start looking exclusively at the Texas pre-owned business jet market to provide our clients with more focused and relevant information.

The pre-owned business jet market in Texas remained strong in Q3 2023, with continued growth in both sales and inventory. The state's robust economy and favorable business climate continue to attract buyers from all over the United States and the world.

According to the JetNet IQ Trends Report, Texas accounted for 22% of all pre-owned business jet sales in the United States in Q3 2023. This is up from 20% in the same period last year. The state also saw a 5% increase in pre-owned business jet inventory in Q3 2023, compared to the same period last year.

The most popular pre-owned business jets in Texas are the Cessna Citation Latitude, the Textron Aviation Citation Sovereign, and the Gulfstream G650.

Market Drivers

The Texas pre-owned business jet market is driven by a number of factors, including:

  • Strong economic growth: Texas has one of the strongest economies in the United States. The state's GDP is expected to grow by 3.5% in 2023, which is faster than the national average of 2.5%. This economic growth is driving demand for pre-owned business jets, as businesses and individuals look for ways to improve their efficiency and productivity.

  • Favorable business climate: Texas has a favorable business climate, with low taxes and minimal regulations. This makes the state an attractive place for businesses to relocate and expand. This is also driving demand for pre-owned business jets, as companies and individuals look for ways to travel more efficiently and conveniently to and from the state.

  • Growing demand for air travel: The demand for air travel is growing in Texas, as more and more people are traveling for both business and leisure. This is driving demand for pre-owned business jets, as companies and individuals look for ways to travel more efficiently and conveniently.

Market Challenges

The Texas pre-owned business jet market faces a few challenges, including:

  • Rising interest rates: Rising interest rates can make it more expensive to finance the purchase of a pre-owned business jet. This could lead to a decrease in demand for pre-owned business jets.

  • Economic uncertainty: The global economy is facing a number of uncertainties, such as the war in Ukraine and the ongoing COVID-19 pandemic. This uncertainty could lead to a decrease in demand for pre-owned business jets.

  • Inventory constraints: While still continuing to loosen up from the post-pandemic crunch, the inventory of pre-owned business jets is still somewhat limited, keeping prices reasonably stable, but as interest rates rise, we’re looking for a buyer’s market to return over the coming months.

Outlook

The outlook for the Texas pre-owned business jet market is mixed. The state's strong economy and favorable business climate are driving demand for pre-owned business jets. However, rising interest rates and economic uncertainty could lead to a decrease in demand. Additionally, the limited inventory of pre-owned business jets could drive up prices and make it difficult to find the right aircraft for your needs.

Overall, the Texas pre-owned business jet market is expected to remain relatively stable in the coming months. However, buyers should be aware of the potential challenges discussed above and budget accordingly.

Additional Insights

In addition to the trends and challenges discussed above, there are a few other notable insights about the Texas pre-owned business jet market in Q3 2023:

  • The market for pre-owned light jets is particularly strong: The market for pre-owned light jets is particularly strong in Texas, as these aircraft are more affordable than other types of pre-owned business jets and are well-suited for the state's short-haul flights.

  • Buyers are increasingly looking for aircraft with newer technology: Buyers are increasingly looking for pre-owned business jets with newer technology, such as upgraded avionics and navigation systems. This is because newer technology can improve the safety and efficiency of business jet operations.

  • Sellers are offering more financing options: Sellers of pre-owned business jets are offering more financing options to buyers, such as in-house financing and lease-back programs.

Overall, the Texas pre-owned business jet market remains strong and resilient. Texas’ business-friendly climate has invited an influx of large corporations to the state, and with them come their flight operations, which is driving a strong statewide business aviation marketplace.

As always, if you need more specific information, or you have a suggestion on how we can provide our readers with more valuable info, please feel free to email us.

Clayton Corn