As oil prices plummet, Houston developers wonder how the housing market will be affected.
The price of oil has fallen to its lowest point in the past six years. To most of the world this may be a good thing because it means gas will be cheaper, but it has real estate developers in Houston worried because it means jobs will be cut, income will suffer, and people may take flight and seek greener pastures.
The suburbs of Houston grew expansively during the energy boom, so developers were worried that as the energy companies cut costs, the housing market would suffer.
Despite the changes in the energy industry, it seems like Houston’s housing market seems to be holding up, according to the Urban Land Institute panel discussion called ‘The Effect of Energy Markets on Suburban Real Estate’. The price of Houston homes is projected to rise over the next three years, although the growth will be slow because of the job market, as a result of the slump in oil prices.
Single family homes around Houston have seen a boom in the past several years, with homebuilders having to meet an increased demand. This growth has plateaued a bit, but continues on despite the changes in the energy industry.
Multi-family homes are a bit more questionable, with occupancy rates holding at 89 percent in some places, and slowing down to 3 percent in others.
As the oil industry changes it will be interesting to see how cities in Texas are affected, but for now it seems like Houston holding its own.via ]