Jun 24, 2016
Houston’s lack of job growth cause for concern
HOUSTON - Oil prices may have bottomed out, but Houston’s economy probably hasn’t. Employment growth has fallen from almost 120,000 additional jobs at the end of 2014 to zero last month,...
HOUSTON – Oil prices may have bottomed out, but Houston’s economy probably hasn’t.
Employment growth has fallen from almost 120,000 additional jobs at the end of 2014 to zero last month, Patrick Jankowski, chief economist for the Greater Houston Partnership, said.
“I’m not going to sugarcoat the truth,” Jankowski told the room full of real estate agents, developers and architects.
Worse, the jobs lost have been well-paying positions in manufacturing, engineering, or oil and gas, replaced by lower-paying posts in construction, education and hospitality.
Office vacancy rates have risen from 12 to 14 percent since the end of 2014, and subleases from 14 to 18 percent.
Top-shelf apartment occupancy slid under 80 percent in May — and builders have another 20,000 units, or about 14 percent of the market, under construction now.
Houston is creating apartments at four times the rate the region is creating jobs.
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