Oil Prices Dropping!!!!!

[Steve Rozenberg]

With the price of oil dropping, who thinks  it is a good or bad idea to invest in Houston? I have my opinion living here in Houston but am curious what others think that are not here.

[Steve Rozenberg]

My thoughts are this, when all these people can not sell their homes now (which we are seeing property sales slow) that is great for the rental market for two reasons. 

1. Prices will start to come down and help cashflow, so if you have money and ready to go the deals get better. 2. All the people that lose their jobs may have to downsize to a smaller home or may lose their home and now they become renters.

It sounds bad but a bad economy is actually the best time for investors and landlords. Houston is home to 2 major airlines (United and Southwest) , NASA, Hewlett Packard, The biggest Medical center in the world (if it were its own city it would be 16th in the country), Rice University, One of the largest exporting ports in the country and when the Panama Canal is finished it is predicted to be the largest.

There are over 250,000 Non-Owner occupied homes in the greater Houston area and 65% of the city rents. It is just such a diversified economy here I do not see it crumbling, but I could be wrong.