Yardi Matrix: Houston’s Energy Angst
By
After years of outperforming its peers, Houston’s energy-driven economy is being shaken by low oil prices. Although the economy has diversified in recent years, the precipitous drop in the price of crude oil has dealt a reverberating blow that has flattened job growth and dampened the apartment market.
The news isn’t all bad: The metro has a first-rate healthcare system that is adding skilled workers and there is growth in the hospitality, education and government sectors. The metro remains a target for international investment, healthcare expansion, international trade and industrial investment. Projects such as the Texas 288 tollway, a $2.1 billion public-private partnership between the Texas Department of Transportation and Blueridge Transportation Group, will offer easy access to major employment centers such as the Texas Medical Center, covering a 10-mile stretch from U.S. 59 to the Harris County line. Still, the energy sector will continue to challenge Houston’s economy, as recovery is not expected to begin until 2017…
