Many sectors of Houston’s real estate market have been affected by the oil downturn – some more than others.
The office market, for example, has suffered as a declining workforce has left many Houston offices empty.
“We have seen something of a pullback on that but it’s a natural pullback coming off of a peak,” he said. “And that peak was driven primarily through population gains in 2014 and 2015 into 2016.”
The office market, meanwhile, will be the slowest to come back, Kramp said.
The oil downturn – and simultaneous petrochemical boom – have also led to a geographical shift in commercial and residential real estate.
“We’re now seeing pockets like east Houston, Baytown, Pasadena, League City that are neck-and-neck with the residential growth in west Houston,” he said. “About 2.5 percent.”
Kramp expects the eastside growth to continue, as evidenced by long-term investments in the area.