Thursday, August 16, 2012

Houston Economic Update August 2012 via FRB of Dallas

The Federal Reserve Bank of Dallas business-cycle index indicates economic activity in the Houston metropolitan area grew at an annualized rate of 2.8 percent in June. Estimates of weak employment growth for June may be weighing on the index, but key area industries continue to perform well despite eroding national and international expectations. Real estate markets are improving and seeing strong activity levels, energy prices are mostly in healthy territory and retail indicators are looking strong. Thus, the outlook for Houston in the coming months remains positive.

Seasonally adjusted home sales declined an average of 2.46 percent over the three months ending in June. Single-family housing permits and starts were down in June, but trends remain flat to positive. Multifamily occupancy was 89.4 percent in the second quarter, and lease rates were up for all apartment classes over the last year and quarter. Industrial vacancy rates fell to 5.3 percent in the second quarter, a decline both year to year and from the first quarter, and CBRE cites 4.5 million square feet under construction. Office space continues to outperform, with lease rates up and vacancy rates down from the first quarter to 13.9 percent.

Read more...Houston Economic Update August 2012 via FRB of Dallas

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