'Exxon Effect' braking on north Houston housing market'Exxon Effect' braking on north Houston housing markethttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=106372015-10-01T05:00:00Z2015-10-01T20:00:00Z

​​NORTH HOUSTON - When Exxon Mobil Corp. announced the construction of a new campus north of Houston, residential developers and home builders swung their hammers into action.

Developers are constructing new master-planned communities and home builders are erecting hundreds of new homes in Conroe, Shenandoah, Spring, Springwoods Village and The Woodlands to accommodate more than 10,000 energy employees working at the Exxon and Southwestern Energy campuses.

This sudden influx of employees has driven demand for new housing in the north Houston suburbs. However, now that the first phase of the new Exxon campus is complete, home builders are realizing this so-called “Exxon Effect” isn’t as immediate as originally thought.

“The Exxon Effect is slower than expected,” said Lawrence Dean, senior advisor with Metrostudy Corp.’s Houston office, a housing research firm. “It’s caught a lot of developers and builders by surprise.”

Instead of immediately buying homes in the north Houston suburbs, new Houston energy transplants are signing nine and ten month apartment leases.

Developers and builders who thought there would be a sudden increase in new housing demand are finding out they have some lead time before the rush of homebuyers descend on the area, Dean said.

Developers and home builders expect Exxon employees will keep coming to the north Houston region despite plunging oil prices. Exxon Mobil and Southwestern Energy campuses have already proven to be an economic juggernaut for Houston’s residential real estate industry.

Dallas Business Journal
Houston-The Woodlands-Sugar Land

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