HOUSTON—Improving job growth, stabilization in energy prices and restraint in construction will contribute to an upswing in Houston real estate values in 2018, according to Deal Sikes & Associates, a Houston-based real estate valuation and consulting firm. The multifamily market reported strong gains in leasing as displaced flooding victims leased apartments. The oversupply in the apartment market has virtually vanished, supporting a platform for improved multifamily valuations.
“Although there will be exceptions, many Houston properties–both commercial and residential–are poised to rise in value in 2018,” said Matthew Deal, principal at Deal Sikes & Associates. “Construction remains at moderate levels, while Hurricane Harvey trimmed the inventory. The market is tightening as the economy improves and this points to rising prices in the year ahead.”
The US Energy Information Administration forecasts that West Texas Intermediate crude will be priced at an average of $51 per barrel in 2018, continuing a stabilization of energy pricing that prevailed in much of 2017.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
