Houston Market Report
Metro Unemployment Still Volatile as Oil and Tourism Sectors Heavily Burdened; State’s Quick Reopening and Migration Trends Sustain Buyer Interest
Energy Corridor fundamentals softened. Low per barrel oil prices and sluggish demand amid less travel is weighing on Houston’s energy sector. The office vacancy rate in the Energy Corridor area increased 270 basis points from April through September to 22.8 percent. The Class B/C rate here jumped 480 basis points, compared with a 130-basis-point rise for Class A, potentially revealing that smaller companies are struggling. Thousands lost jobs within the industry, and many firms face challenges in replenishing workforces, stunting short-term rental demand. During the second and third quarters, apartment vacancy in the Energy Corridor area rose 160 basis points as the average effective rent fell more than 6 percent.