Texas since the oil crash

[Michael Wolffs]

For a lot of years, Texas was a hot multifamily market. Much of that activity was driven by the oil boom. But a year or two ago, the Saudis popped that bubble. Oil prices have come back a little since then, but not nearly to where they were.

How has this effected the multifamily market?  Have prices come down at all?  It looked like an interesting market, but one that was at the top of the cycle, so not good to by into at the time.  Has that changed at all?

[Brian Foster]

O&G hemorrhaged >80,000 jobs in 15 & 16. Market still had net job growth due to diversification of economy. Houston has the largest medical center in the world. The other side of the O&G industry that is going great is the petrochemical and refining business because they took this as an opportunity to reinvest in infrastructure (created a lot of jobs). Houston finished 2016 with the highest employment rate in the city's history according to the Greater Houston Partnership.

Brookings Institute did a 10 year study and had Houston ranked #2 for economic growth (San Jose was #1).

Biggest population growth in the Nation for about 8 years in a row, showing no signs of slowing down. Way over inventoried in Class A apartments and commercial Real Estate (office space) right now but at one of the lowest inventories of SFH (3.5 months) ever. We will pass 7 million people this year even if they build the wall ;-)

Lots of reasons to be bullish on HTown economy, and SFH inventory (lack of) is a big problem (opportunity) right now.