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East Houston Resilient to Oil Downturn

 

 

Sundance Cove is in a position to capture demand for communities in northeast Houston as the region continues to grow, both in terms of employment and population/households.

Houston Business Journal recently reported:

The biggest difference in this downturn compared to the Great Recession of the 1980s, however, is that West Houston's economic issues aren't impacted by national problems. Nationally, the economy is strong, and some areas outside of West Houston, like East Houston, for example, are actually doing well.

"The west side of Houston is home to virtually all of the damage that will be done by the downturn," Gilmer said.

Specifically, Gilmer pointed to the $50 billion worth of construction underway in the downstream market, which is largely taking place on the east side of Houston. Projects like the Dow facility in Lake Jackson help buoy the regional economy along with diversity from other industries such as health care.

The most foreboding point of the study was the multifamily market. While industry experts say multifamily will weather the storm, economists from both the Greater Houston Partnership and Gilmer predict that apartments and condos are overbuilt in the city and that a drop in occupancy is already occurring in most submarkets.

"You're OK if you're a national market; you're OK if you're on the east side. But if you're broadly dependent on the energy industry like many are in the Houston economy, it's time to just be careful," Gilmer said.