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RealReal EstateEstate MarketMarket OverviewOverview HoustonHouston Jennifer S. Cowley Assistant Research Scientist Texas A&M University July 2001 © 2001, Real Estate Center. All rights reserved. RealReal EstateEstate MarketMarket OverviewOverview HoustonHouston Contents 2 Note Population 6 Employment 9 Job Market 10 Major Industries 11 Business Climate 13 Public Facilities 14 Transportation and Infrastructure Issues 16 Urban Growth Patterns Map 1. Growth Areas Education 18 Housing 23 Multifamily 25 Map 2. Multifamily Building Permits 26 Manufactured Housing Seniors Housing 27 Retail Market 29 Map 3. Retail Building Permits 30 Office Market Map 4. Office Building Permits 33 Industrial Market Map 5. Industrial Building Permits 35 Conclusion RealReal EstateEstate MarketMarket OverviewOverview HoustonHouston Jennifer S. Cowley Assistant Research Scientist Aldine Jersey Village US Hwy 59 US Hwy 290 Interstate 45 Sheldon US Hwy 90 Spring Valley Channelview Interstate 10 Piney Point Village Houston Galena Park Bellaire US Hwy 59 Deer Park Loop 610 Pasadena US Hwy 90 Stafford Sugar Land Beltway 8 Brookside Village Area Cities and Towns Counties Land Area of Houston MSA Baytown La Porte Chambers 5,995 square miles Bellaire Missouri City Fort Bend Conroe Pasadena Harris Population Density (2000) Liberty Deer Park Richmond 697 people per square mile Galena Park Rosenberg Montgomery Houston Stafford Waller Humble Sugar Land Katy West University Place ouston, a vibrant metropolitan City Business Journals. The city had a growing rapidly. In 2000, Houston was community, is Texas’ largest population of 44,633 in 1900, growing ranked the most popular U.S. city for Hcity. Houston was the fastest to almost two million in 2000. More employee relocations according to a growing city in the United States in the than four million people live in the study by Cendant Mobility. 20th century, according to American metropolitan area, and all sectors are 1 NOTE he June 2001 flooding caused by damage, according to estimates made Some projects mentioned in this Tropical Storm Allison resulted by the Harris County Appraisal District report may have been affected by the T in $4.88 billion in damage in and Harris County Emergency Man- flooding, particularly those in the hard- Harris County, including nearly $2 agement. Flooding destroyed an hit downtown area. Some projected billion damage to Texas Medical estimated 2,744 homes and 696 start or completion dates may have Center facilities. mobile homes. County businesses been delayed. Apartments and residential proper- suffered an estimated $1.08 billion in ties sustained about $1.76 billion damages POPULATION Kelly Air Force Base, San Antonio Houston MSA Population Year Population 1990 3,342,247 1991 3,430,208 1992 3,515,193 1993 3,580,428 1994 3,641,385 1995 3,698,830 1996 3,767,278 1997 3,841,934 1998 3,926,837 1999 4,010,969 2000 4,177,646 Source: U.S. Census Bureau County Population Growth Growth 1990–2000 County 2000 Population (in percent) Chambers 26,031 29.6 Fort Bend 354,452 57.2 Harris 3,400,578 20.7 Liberty 70,154 33.1 Montgomery 293,768 61.2 Waller 32,663 39.6 Source: U.S. Census Bureau 2 Area Cities With 10,000 or More Residents Growth 1990–2000 City 2000 Population (in percent) Houston 1,953,631 15.1 Pasadena 141,674 18.7 Baytown 66,430 3.4 Sugar Land 63,328 43.1 Missouri City 52,913 45.9 Conroe 36,811 27.0 La Porte 31,880 14.3 Deer Park 28,520 3.4 Rosenberg 24,043 16.1 South Houston 15,833 10.2 Stafford 15,681 94.1 Bellaire 15,642 13.7 Humble 14,579 19.6 West University Place 14,211 10.0 Katy 11,775 48.0 Richmond 11,081 9.4 Galena Park 10,592 5.5 Source: U.S. Census Bureau he population of the Houston rate faster than the state in the 1990s. Texas State Data Center. The Texas MSA increased at an average Population projections forecast an Water Development Board predicts a T annual rate of 2.4 percent during average growth rate of 2.1 percent per growth rate of 2.3 percent per year the past decade. Houston grew at a year through 2020, according to the through 2020. 3 Texas Metropolitan Area Population Change, 1990–2000 (in percent) McAllen-Edinburg-Mission 48.5 Galveston-Texas City 15.1 Austin-San Marcos 48.2 Tyler 15.5 Laredo 44.9 El Paso 14.9 Dallas 31.5 Corpus Christi 14.3 Brownsville-Harlingen-San Benito 28.9 Victoria 13.1 Brazoria County 26.1 Waco 12.9 Houston 25.8 Texarkana 9.4 Fort Worth-Arlington 25.1 Lubbock 9.0 Bryan-College Station 25.1 Wichita Falls 7.8 Texas 22.8 Longview-Marshall 7.7 Killeen-Temple 22.6 Beaumont-Port Arthur 6.6 San Antonio 20.2 Abilene 5.8 Sherman-Denison 16.4 San Angelo 5.6 Amarillo 16.2 Odessa-Midland 5.1 Source: U.S. Census Bureau Houston MSA Projected Population Texas State Texas Water Year Data Center Development Board 2005 4,402,934 — 2010 4,806,857 4,910,029 2015 5,167,001 — 2020 5,615,482 5,932,219 Sources: Texas State Data Center and Texas Water Development Board Projected Population Growth, 2000–2020 (in percent) 50 40 30 41.9 40.2 20 10 0 Houston MSA Texas Source: Texas State Data Center 4 Household Composition Harris County Texas Median household size (1990) 2.59 2.73 Population younger than 18 (1999, in percent) 28.5 28.5 Population 65 and older (1999, in percent) 7.7 10.1 Source: U.S. Census Bureau Ethnic Distribution (in percent) Harris County Texas Ethnicity 1990 2000 1990 2000 White 54.3 42.1 60.8 52.4 Hispanic 21.8 32.9 25.3 32.0 Black 19.4 18.2 11.7 12.2 Asian 4.1 5.1 0.3 3.2 American Indian 0.3 0.2 1.8 0.3 Other 0.1 0.1 0.1 0.2 Two or more races* — 1.3 — 1.1 *For the 2000 Census, the Census Bureau changed the “race” options, allowing people to report their race as “other” or as two or more races. Source: U.S. Census Bureau ousehold size in Harris County grown more ethnically diverse over the average. The Houston MSA had a is smaller than the state aver- past decade. The Hispanic population median per capita income of $32,386 H age. The county also has a has seen a large increase, as it has in in 1999. The state average was smaller percentage of population age the state as a whole. Asian population $26,834, according to the U.S. Bureau 65 and older. The Houston area has density is almost twice the state of Economic Analysis. 5 EMPLOYMENT Source: U.S.BureauofLaborStatistics 100,000 102,000 104,000 106,000 108,000 110,000 112,000 114,000 116,000 118,000 120,000 Source: U.S.BureauofLaborStatistics 0 1 2 3 4 5 6 7 98,000 January-95 May Sept 1990 January-96 1991 May Houston MSAUnemploymentRate Sept 1992 Houston MSAEmployment January-97 1993 May (in percent) Sept 1994 6 January-98 May 1995 Sept 1996 January-99 May 1997 Sept 1998 January-00 May 1999 Sept 2000 January-01 Top Ten Employers Top Ten Private Employers Houston IndependentBergstrom School District Air Force Base, Compaq Austin Computer Corporation Education Computer technology 32,600 employees 19,785 employees City of Houston Continental Airlines Government Airline 22,223 employees 17,010 employees Compaq Computer Corporation Administaff Computer technology Staffing services 19,785 employees 15,968 employees Continental Airlines Southwestern Bell Airline Telecommunications 17,010 employees 14,039 employees Administaff Halliburton Company Staffing services Energy services 15,968 employees 13,244 employees Southwestern Bell Memorial Hermann Healthcare System Telecommunications Health Care 14,039 employees 11,454 employees U.S. Postal Service Kroger Food Stores Mail Grocer 13,906 employees 9,635 employees Halliburton Company Wal-Mart Stores Energy services Retailer 13,244 employees 9,000 employees Harris County Reliant Energy Government Energy Services 12,700 employees 7,756 employees Memorial Hermann Healthcare System Shell Oil Company Health Care Energy services 11,454 employees 7,255 employees Source: Houston Business Journal, 2000 7 Employment Growth by Industry Houston MSA Texas Employment growth, 2000 (in percent) 2.6 3.2 Unemployment rate (in percent) 4.1 4.2 New jobs in 2000 52,400 288,900 Employment growth by sector (in percent) Services 3.5 4.7 Trade 2.1 3.1 Manufacturing 0.2 0.1 Mining 0.2 2.3 Finance, insurance and real estate 0.8 1.3 Construction 5.1 6.2 Government 2.4 1.7 Transportation, communications and public utilities 3.7 5.1 Source: Texas Workforce Commission Texas Metropolitan Area Employment Change, 1990–2000 (in percent) Austin-San Marcos 58.8 El Paso 15.4 Laredo 40.3 Waco 14.3 McAllen-Edinburg-Mission 35.8 Lubbock 14.0 Dallas 30.4 Sherman-Denison 12.5 Brownsville-Harlingen-San Benito 30.1 Longview-Marshall 12.2 Bryan-College Station 29.2 Abilene 11.4 Killeen-Temple 28.7 San Angelo 10.7 San Antonio 28.6 Corpus Christi 10.3 Fort Worth-Arlington 23.7 Galveston-Texas City 8.2 Texas 23.3 Wichita Falls 7.8 Tyler 22.9 Odessa-Midland 6.5 Victoria 22.4 Texarkana 4.5 Houston 22.1 Beaumont-Port Arthur 3.5 Amarillo 18.6 Brazoria County 2.3 Source: U.S. Bureau of Labor Statistics, February 2001 mployment increased 2.6 per- 2000, down from 4.5 percent in 1999, The Houston branch of the Federal cent in the Houston MSA during according to the Texas Workforce Reserve Bank of Dallas forecasts a 3.5 E 2000, compared with a 2 percent Commission.