Houston is the 2nd largest MSA in Texas and is the 4th most populous metro in the nation.[1] Houston maintains its place in the oil & gas industry representing nearly a third of the nation’s jobs in this sector.[2] Texas continues to be an appealing location for employers including Hewlett Packard Enterprise which moved its headquarters to Spring, TX in North Houston in April 2022.[3] Additionally, while Chevron maintains its headquarters in San Ramon, CA, it has shifted a significant number of its employees to Houston as it downsizes in California.[4]
In 2022, the Houston metro population was 7.2 million people, growing 19.0% from over a 10-year span since 2011.[5] While the metro’s population is steadily growing, the rate of growth started to decline a few years ago, from 2.62% in 2017 to 1.73% in 2022.[6] The city continues to have strong employment opportunities adding 176,300 jobs during the 12-month period from November 2021 to November 2022.[7] Since peak unemployment in April 2020 (13.3%) the unemployment rate has steadily declined and is now close to pre-pandemic levels, reporting 4.0% unemployment in November 2022, compared to a national rate of 3.5%.[8]
Houston’s multifamily market reported annual rent growth of 5.0% compared to 6.6% nationally. Occupancy decreased slightly from 93.8% to 93.1% in 4Q22. Rent growth is expected to settle around 2.0% in 2023, with occupancy hovering around 91.3%. New supply decreased this year adding 15,140 units in 2022, compared to 16,812 units in 2021. In 2023, new supply is forecasted to increase to 19,736 units.7 The growth in Houston is beginning to slow in comparison to the rest of Texas and the nation, but the employment and housing markets show signs of remaining steady in coming years.
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References:
[1] www.houston.org/houston-data/houston-metropolitan-statistical-area-profile
[2] www.houston.org/why-houston/industries/energy https://bit.ly/HoustonChronicle-HewlettPackardEnterprise
[3] https://bit.ly/HoustonChronicle-HewlettPackardEnterprise
[4] https://tinyurl.com/Chevron-Downsize
[5] www.houston.org/houston-data/houston-metropolitan-statistical-area-profile
[6] https://tinyurl.com/Houston-Population-2022
[7] Houston Market Performance Report 4Q 2022
[8] https://data.bls.gov