Market Research > Houston Market Research

Energy Prices Stabilizing, Providing 
Clarity on Local Economy’s Direction

Low energy prices have taken a toll on the once-robust Houston economy, though the forecast for the market is brightening. Job growth has remained slightly positive, as gains in other sectors have offset cuts related to the energy industry. Nonetheless, the downturn in prices has lead to thousands of losses in the manufacturing, oil extraction, and professional and business services sectors. In fact, much of the local manufacturing sector is dedicated to the oil sector and white-collar energy jobs are evaporating as companies consolidate or enter bankruptcy. Oil prices have climbed since mid-January, and are currently close to the $50-per barrel range. At current levels, many of the large producers will be able to hold their payroll levels steady. Although the market is stabilizing, demand for rental properties will be eclipsed by new construction in the apartment sector this year. Developers moved thousands of apartments into the pipeline when job growth was healthy and many of those projects are still coming online. Underway inventory currently accounts for 3.8 percent of existing stock, which will put upward pressure on single-family and multifamily vacancy […]


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