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Market Report

Houston Multifamily Market
Report

3Q 2022

Energy Sector Tailwinds Fuel Economy;
New Supply Aligns with High Demand Areas

Labor growth signals continued rental demand brawn. Houston's central industry, oil and gas production, quickly went into expansion mode as the Ukraine invasion prompted countries across the world to sanction trade with Russia. As the global price per barrel of oil shot above $100 during the majority of the second quarter, the rig count in Texas climbed from 277 at the start of 2022 to 371 at the end of July. Increased downstream operations greatly benefit the Houston economy. The natural resource and mining employment sector was the fastest growing on a percentage basis during the first half, followed by leisure and hospitality, and then construction. Hiring in these industries supports demand for mid-tier garden-style rentals across the market. Additionally, an improved oil and gas sector should bolster staff counts at the various firms with offices in the Energy Corridor, lifting demand for high-quality rentals in adjacent areas like Katy.

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