Wednesday, May 29, 2013

Houston Is Unstoppable: Why Texas' Juggernaut Is America's #1 Job Creator

I actually did something right this time!  Yeah, it's HOT.  It's MUGGY. But Houston is where the money is at.

Texas is killing it.

It dominated the recession, crushed the recovery, and in a new analysis of jobs recovered since the downturn, its largest city stands apart as the most powerful job engine in the country -- by far.

The ten largest metros have recovered 98 percent of the jobs lost during the recession, on average. But Houston, the first major city to regain all the jobs lost in the downturn, has now added more than two jobs for every one it lost after the crash. That's incredible.
And I've been talking about what it's like here.  For those in CA who want to be able to live in close quarters like I do and not pay an arm and a leg for house, Houston is where it's at.  It's still possible to by a condo and townhouse here and have money left over for a movie.

The 1980s also taught Houston a lesson about real estate. Between 1982 and 1987, Houston suffered "one of the worst regional recessions in U.S. history," Jankowski said. The metro area lost more than 220,000 jobs -- one in seven in the region -- but added nearly 188,000 housing units, as developers ignored the signs that demand had plummeted. The results were disastrous and scarring for the real estate industry.

Houston avoided over-building problems in this recession by tightening lending and home construction in the early years of the crisis. Houston didn't really have a housing bubble in the 2000s. The ratio between its median house prices and median household incomes peaked at 2.7 in 2006. By comparison, a typical Miami family would have to spend five-and-a-half years of their total income to afford an average home in the city by 2006. In Riverside, it would take nearly seven years. So as housing values cascading all across along the Sun Belt -- by 40 percent percent in Miami and 44 percent in Riverside -- they merely dipped about 2 percent in Houston.  
I moved here in 1987.  I was shocked at what I saw.  Houston was down for the count. There were streets where every other house as up for sale.  Whole shopping centers were half built.  Down in Clear Lake City there was a WHOLE MALL that was practically empty.  There was an electronics store and a shoe store plus a few food court restaurants.

It was the saddest thing I ever saw in my life.  But those days are gone.  

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