For the folks who remain mystified why Houston's economy has not collapsed with the price of oil, please read below. It hasn't collapsed because the Houston economy of today bears little resemblance to the Houston economy of the 1980's. In the 1980's (30yrs ago) the Port of Houston was not significant on a national scale, today is it significant on a global one as it is the #1 US port by foreign tonnage (2014) and #2 overall in the US.
To be sure the oil and gas industry is a significant one in Houston, but its decline over the past year is not going to sink the economy. What it will do it take an area growing 3X-4X the national average to one growing at or slightly above it. That is a big difference from some of the calamitous predictions we heard not too long ago. For a big real estate developer like HHC, it matters little as demand for its offerings remains strong and the oil situation is the difference between 8-10 bidders on a property to “just” 3-4 now.
Still a great place to be in
From the Houston Chronicle:
