Economic Optimism: Houston's Bright Future

Despite the setbacks from Hurricane Beryl, the CCIM Houston/Gulf Coast Chapter Mid-Year Economic Update event thrived.

Special thanks to Dr. Harold Hunt for sharing his research and insights, providing us with a comprehensive economic overview and real estate outlook for the year. Despite higher production costs, shipping challenges, potential import tariffs, and increased government spending, there is plenty of good news.  Here are some highlights from his presentation:

Positive Economic Indicators

·      Inflation has decreased and is expected to continue declining throughout 2025.

·      The U.S. labor market shows steady growth, with participation rates back to pre-COVID levels.

·      Retail sales have rebounded significantly, with May 2024 sales 33% higher than in January 2020.

·      Banks have slightly eased lending standards.

·      The U.S. GDP for 2023 exceeded expectations, with optimistic forecasts for 2024 and 2025 indicating no signs of recession.

·      Texas remains the top state for relocations over the past three years.

·      The Houston Purchasing Managers Leading Index signals ongoing expansion, and construction contracts in Houston have been robust in 2024.

·      The forecast for Houston rent growth in retail, industrial, and office spaces is positive.

·      Houstonians hold an overwhelmingly positive outlook, particularly among young adults, and the Houston economy is expected to outperform the Texas economy this year.