Houston Economic News You Might Have Missed
Happy New Year! According to recent economic forecasts and thought leaders, 2014 is looking good for Houston, which bodes well for the commercial and residential real estate markets and our city as a whole. A few news items you might have missed during the holidays to note:
“The Houston skyline as seen from Wolff Companies’ Central Park. Phase One of the Park Row Completion Project, shown here under construction, is now finished and will soon improve circulation in the rapidly growing Energy Corridor market.”
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Houston ranks No. 4 on Forbes’ list of “The U.S. Regions to Watch in 2014.” Forbes tapped Mark Schill, research director for the Praxis Strategy Group, who crunched a range of indicative data from 2007 to present for the 52 largest U.S. metro areas. The report notes Houston’s gross domestic product growth was 12.3 percent between 2007 and 2012 while population growth hit 11.5 percent during that time. “As has been the case for most of the past five years, Texas cities are clearly the place to be in terms of job creation, wealth formation and overall growth,” commented Forbes contributor Joel Kotkin.
- The Houston area economy is primed to return to a more normal and sustainable rate of growth in 2014, according to economist Patrick Jankowski, vice president of research for the Greater Houston Partnership. Jankowski believes we will see 69,800 new jobs created next year, a 2.5 percent year-over-year growth rate. “We’ve been growing so fast and so long that we can’t keep up with that pace of growth,” Jankowski said at a recent business event. Read the Houston Chronicle article here.
- Furthermore on the subject of job creation, the Texas Workforce Commission’s job report said Houston area employers added 79,600 jobs between October 2012 and October 2013. That represents an increase of 2.9 percent – ranking Houston second in the country for job growth, according to a report issued by the Southwest Information Office of the U.S. Bureau of Labor Statistics. The Texas Workforce Commission also reported the Houston area unemployment rate dipped to 5.6 percent in November compared to 5.9 percent in October and a national unemployment rate of 7 percent.
- For the ninth straight year, Texas is number one for net new relocations, which means more people moved here than left the Lone Star State. As reported by the Houston Chronicle, Allied Van Lines released its annual Magnet States Report, which uses the company’s internal moving data to track U.S. migration patterns. The report showed Texas had a net relocation gain of 1,914 families last year. Another report by the U.S. Census Bureau says Texas is well on its way to a population of 27 million and estimates 1.3 million people came here from 2010 to 2013. No doubt, many came to Houston and are still coming.
- Job growth fueled the residential real estate market. The Houston Business Journal reported November saw the Houston market record its 30th-consecutive month of year-over-year increase in home sales during which there was 2.9 months of inventory for single-family homes compared to five months nationally. If not for the shortage of homes, the number might have been higher. The perfect storm: booming economy, no home construction during the recession, builders racing to catch up and shortage of lots. Real estate reporter Jenny Aldridge, who recently moved here from California, shared her own personal experience.
As we usher in a new year, the Houston economy and real estate market are strong. At Wolff Companies, we wish you and Houston, the Number One City in America, a prosperous new year!