By Analee Micheletti and Lauren Paris
CBRE Research Analysts
Energy and its supporting industries have proven to be a solid base and a powerful driver of job growth and thus a thriving multifamily market. Houston has the incredible job market to thank for the robust activity in the office market. Since the recession, Houston has recovered all the jobs lost and sustained above-average growth, and more people are employed in Houston than ever before. Only two other metros, Washington D.C. and Dallas-Fort Worth, have seen similar job gains. And the energy sector continues to drive growth in the city due to strong drilling activity and high oil prices. The Houston multifamily market-driven population growth, job gains and an evolving demographic of renters in the city have all contributed to the highest occupancies since 2006.
The Houston metropolitan area is currently the fifth-largest metropolitan area in the U.S. and is among the fastest-growing MSAs in the nation, increasing its population at a pace almost twice as fast as the nation between 1990 and 2000. Significant future growth is anticipated throughout the region, which is expected to grow nearly three times the pace of the nation through the next five years; furthermore, a total of 7,808,006 million residents are projected to call the Houston metro area home by 2030 according to forecasts from the Texas Water Development Board.
While the rest of the nation was entrenched in the Great Recession, Houston was the first major metro to emerge, posting modest job gains in January of 2010.
For Complete Report contact CBRE.