HOUSTON (Metrostudy) – The Bayou City’s economy is showing signs of recovery according to a recent Metrostudy report.
The Houston economy had over 13,000 more jobs at the end of 2010 than it had at the beginning, a .5 percent increase after a loss of 102,800 jobs in 2009.
Overall, Metrostudy recorded 18,752 home starts in 2010, a 1.1 percent increase over 2009. This is the first increase in new home activity after three straight years of decline, according to the Metrostudy report.
Houston closed 20,579 homes in 2010, a 10 percent decline from 2009. Closings have outpaced starts since first quarter 2007, so the market has absorbed inventory.
Total new home inventory stands at a 5.9-month supply, below the six months that Metrostudy considers equilibrium for Houston. Finished vacant inventory has dropped to 5,320 units, a 3.1-month supply.
“The Houston market continues to face fewer market obstacles than most U.S. markets,” said David Jarvis, director of Metrostudy’s Houston division. “Texas’ pro-growth policies and business friendly environment will continue to benefit local housing markets and allow for 2011 to show moderate growth.”