2022 - 2023 | Houston Economic Outlook

HOUSTON - Jan. 25, 2023 - PRLog -- Key Takeaways

• Jobs over recovered from pandemic
• Unemployment low
• Energy sector jobs increase
• WTI crude prices expected to
  remain between $80-$90/b in 2023
• Port Houston sets records

Houston Highlights

The Houston MSA population grew by 112,000 or 1.73% between 2021 and 2022 and is projected to grow 1.5% annually over the next five years. Houston's racial diversity is nearly twice as high as the national average, with more than 90 different nations represented. Houston has 94 consulates, the third-largest consular corps in the nation after New York and Los Angeles.

Houston's unemployment rate and job growth continue to make huge improvements, with employment surpassing pre-pandemic highs in April of 2022 and continuing to decrease 3.9 percent by year-end 2022.

The U.S. and North America rig count has improved, but is about half of historical counts. Due to recent recession fears and the accompanying "Demand Destruction" narrative, West Texas Intermediary (WTI) crude prices have retracted from recent highs set in the first quarter of the year. Nonetheless, as the war in the Ukraine prolongs and draw-downs in the U.S. Special Petroleum Reserve (SPR) continue, supply-side constraints remain. Inversely, the recent reopening of China has fostered demand-side concerns. Due to these existing supply and demand imbalances along with worriment surrounding overall production capacity, long-term energy prices are expected to remain elevated. WTI crude is forecasted to remain in the $80-$90/b range during 2023.

See the full report here: https://www.colliers.com/en/research/houston/2022-2023-ho...