KEY ECONOMIC FACTORS

NEW BUSINESS ANNOUNCEMENTS

• The Greater Houston Partnership has identified 180 businesses that established new operations, relocated to, or expanded operations here in Q2/24. The bulk of activity, 148 projects, involved companies expanding operations and adding jobs. Another 32 established new facilities in the region.
• Project announcements during Q2/24 fell into five categories: distribution and warehouse, headquarters, manufacturing, office, and research and development. 

 EMPLOYMENT TRENDS

• In the 12 months ending June ’24, the region created 78,000 jobs. That’s down considerably from the 139,800 created over the comparable period in ’23.
• Payroll employment hit 3,460,900 in June. Even as growth weakens, the region should top 3.5 million jobs by December and finish the year with a record number of jobs. 
• Metro Houston ranked third in job growth over the past 12 months. Only metro New York and Los Angeles with populations substantially larger than Houston created more jobs.

 KEY ECONOMIC TRENDS

• Construction — Over $19.4 billion in construction contracts were awarded in the Houston area through the first five months of this year. That’s up 64.3 percent from the $11.8 billion awarded over the comparable period in ’23. Residential, non-residential and non-building awards were all up compared to last year
• Industrial Space — The demand for industrial/warehouse space in Houston continues to decline. In Q4/22, the vacancy rate was at a low of 5.1 percent but has since increased to 7.7 percent in Q2/24.
• Office Space — Houston’s office market recorded 244,681 square feet (SQF) of net absorption in Q2/24, up from 88,423 SQF in Q2/23. In Q1, however, the market logged 743,599 SQF of negative absorption, leaving the market with 301,696 SQF negative net absorption so far this year.
• Retail — Houston’s retail real estate market boasts the healthiest performance among the city’s commercial real estate sectors. Retail vacancy rates remain low. Merchants continue to absorb space, although at a slower pace than in ‘23. Rents remain stable. And overbuilding is not a concern.
• Unemployment — Houston’s unemployment rate jumped from 4.0 percent in May to 4.8 percent in June. The jump was expected. The rate always rises in June as high school and college students seeking summer employment temporarily enter the workforce and as recent high school and college grads permanently enter the workforce. Houston economy is still growing but at a slower pace.  

Source: Greater Houston Partnership