Growth in Houston and Southeast TX: Q&A with Ray Perryman

Connect Media talked with Texas economist Ray Perryman concerning various trends throughout the Lone Star State, and his forecast for each region. In this installment, Perryman focused on Southeast Texas, which includes Beaumont and Port Arthur, as well as Houston Commercial Real Estate.

Q. Do you agree with others that the Houston economy has reached bottom, and is turning the corner?
A. The Houston area has definitely bottomed out. At the peak of the recent oil surge, the area was gaining about 80,000 jobs per year. That fell to between 15,000-20,000 as oil prices suffered, and rebounded to about 50,000 in 2017. I expect the area to continue on a strong path. There will be some noise in that data due to the timing of various issues related to Harvey, but on balance, the added construction will likely be a boon in 2018.

Q. Even as oil companies have had to cut back on jobs and activity, how is the growth of petrochemicals impacting the region?
A. There are massive investments taking place in the area, especially in Beaumont and Port Arthur. We’re seeing investments and construction related to liquified natural gas, petrochemicals and pipelines, all of which are major sources of growth for Southeast Texas.

Q. Moving away from chemicals and oil, what are some of the other economic drivers of the region, and how will they impact the economy over the next year or so?
A. The entire region, but most especially the Port of Houston, will benefit from expanding global trade and the improvements in the Panama Canal. The Houston area is also a major global center of health and biosciences, which is growing rapidly.

For comments, questions or concerns, please contact Texas Commercial Real Estate News Editor Amy Sorter