Houston Steps Down As Best In Real Estate, According To Annual Report
An annual survey by the Urban Land Institute reported that Houston was ousted as the most favored city in the field of commercial real estate. Dallas and Austin have gained and replaced the coveted spot vacated by Houston, coming in at nos. 1 and 2 respectively, according to an article on blog.chron.com.
Still in the same article, Houston was known to be the rising energy sector, as well as showing dominance in the real estate industry. Below is an excerpt of the said report:
"Houston provided the most dramatic move, falling from number one to number 30. Concern over what the fall in the price of oil combined with the current level of new development gave survey respondents pause for 2016. .... Last year's interviews and surveys were conducted with oil prices climbing steadily toward $100 a barrel, so it was no surprise when Houston-which had been in the top ten in previous years-moved to the number-one spot. What a difference a year can make! As oil prices have plummeted into the $40-per barrel range, survey respondents are not confident in Houston real estate for the coming year."
In another article on bizjournals.com, Houston sank to no. 30 on the ULI report, which was called "Emerging Trends in Real Estate United States and Canada 2016". The city however, was dubbed favored in the retail, hotel, industrial and multi-family sectors. It ranked no. 6 for homebuilding, no. 50 for investment as well as no. 59 for development. While it may seemed negative for Houston, ULI had the chance to get positive feedback from some interviewees."Other interviewees see the perceived weakness in the Houston market as potentially a buying opportunity in what they feel is still a vibrant market. The bottom line: Houston may be in for an interesting couple of years, with detractors and cheerleaders debating its future," as seen in the report.