HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
Real Estate Market Overview 2008
Houston-Sugar Land-Baytown
Houston is Texas' largest city and the fourth largest city in the United States. Houston was the fastest growing city in the United States in the 20th century, according to American City Business Journals. More than four million people live in the metropolitan area. While still a major refinery center, Houston has managed to diversify its business base so the local economy does not follow the drastic rise and fall of oil prices. The Port of Houston, one of the largest in the world, is the second busiest port in the United States in terms of annual tonnage. Houston is also the site of the battle of San Jacinto, a battle that won Texas independence from Mexico. Brazoria is located southwest of Galveston and Houston and is composed of clusters of small cities and communities. The area was first populated when Stephen F. Austin selected it for his proposed settlement, and 89 of Austin's Old Three Hundred had grants in what is now Brazoria County by 1824. Brazoria County is composed of two regions, Brazosport and northeast Brazoria County. Alvin and Pearland are the two largest cities in northeast Brazoria County. Brazosport and the AlvinPearland areas are distinct and geographically separate. The Brazosport area is heavily dependent on the chemical industry while Alvin and Pearland are more a part of Houston's economy. Pearland is about 15 miles from downtown Houston. Galveston, once known as the "Wall Street of the South," was Texas' wealthiest city during the late 1800s. The city's prosperity was brought to a sudden halt when a hurricane struck the island on September 8, 1900. It still is considered the deadliest natural disaster in U.S. history, killing over 6,000 people. The Galveston-Texas City is on the Gulf of Mexico about 45 miles south-southeast of Houston. Galveston Island's beach stretches 32 miles and provides the backdrop for the area's multimillion-dollar tourism industry. Less than 50 square miles of the county (about 12 percent) are located off the mainland. Quick Facts Land Area 8,926.23 square miles 2007 Population Density 630.5 people per square mile Counties Austin, Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery, San Jacinto, Waller Area Cities and Towns Alvin, Algoa, Angelton, Bailey's Prairie, Bacliff, Baytown, Bellaire, BonneyRosharon, Brazoria, Clute, Conroe, Damon and Damon's Mound, Danbury, Danciger, Deer Park, Dickinson, East Columbia, Freeport, Friendswood, Galena Park, Galveston, Hitchcock, Houston, Humble, Jones Creek, Katy, Kemah, La Marque, La Porte, Lake Jackson, League City, Liverpool, Manvel-Iowa Colony, Missouri City, Oyster Creek, Pasadena, Pearland, Quintata, Richmond, Rosenberg, San Felipe, San Luis Pass, Santa Fe, Surfside Beach, Stafford, Sugar Land, Sweeny-Old Ocean, Texas City, West Columbia, West University Place
*This report's MSA data reflects either 1999 or 2003 MSA definitions based on data availability. Use of 1999 definition is noted w here applicable. Source: U.S. Census Bureau and Real Estate Center at Texas A&M University
HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
Microsoft product screen shot reprinted with permission from Microsoft Corporation.
Metropolitan Statistical Areas (MSAs)
DALLAM SHERMAN HANSFORD OCHILTREE LIPSCOMB HARTLEY MOORE HUTCHINSON ROBERTS HEMPHILL
OLDHAM
POTTER
RANDALL DEAF SMITH
2
CARSON
GRAY
WHEELER
ARMSTRONG
DONLEY
COLLINGSWORTH
PARMER
CASTRO
SWISHER
BRISCOE
HALL
CHILDRESS HARDEMAN
BAILEY
LAMB
HALE
FLOYD
MOTLEY
COTTLE FOARD
COCHRAN
HOCKLEY
LUBBOCK
14
WILBARGER
WICHITA
CROSBY
DICKENS
KING
KNOX
BAYLOR
ARCHER
25
CLAY MONTAGUE COOKE
GRAYSON
20
COLLIN
FANNIN
LAMAR DELTA
RED RIVER
YOAKUM
TERRY
LYNN
GARZA
KENT
STONEWALL
HASKELL
THROCKMORTON YOUNG
JACK
WISE
DENTON
HUNT
JONES GAINES DAWSON BORDEN SCURRY FISHER
ANDREWS
MARTIN
HOWARD
MITCHELL
NOLAN
TAYLOR
1
SHACKLEFORD STEPHENS
PARKER PALO PINTO
TARRANT
8
FRANKLIN TITUS HOPKINS MORRIS CAMP RAINS
21
CASS
BOWIE
ROCKWALL DALLAS KAUFMAN ELLIS VAN ZANDT SMITH WOOD
UPSHUR
MARION
CALLAHAN
HOOD EASTLAND ERATH SOMERVELL
JOHNSON
EL PASO
9
HUDSPETH CULBERSON JEFF DAVIS
LOVING
WINKLER
17 16
ECTOR MIDLAND GLASSCOCK CRANE UPTON REAGAN
HENDERSON HILL
STERLING
COKE
RUNNELS
COMANCHE COLEMAN BROWN HAMILTON MILLS
BOSQUE
WARD REEVES
IRION
18
TOM GREEN
CONCHO MCCULLOCH MENARD MASON LLANO SAN SABA
LAMPASAS
11 3
CORYELL
MCLENNAN
24
FALLS MILAM
NAVARRO ANDERSON FREESTONE LIMESTONE LEON ROBERTSON
22 13
GREGG RUSK
HARRISON
PANOLA
CHEROKEE SHELBY NACOGDOCHES
HOUSTON ANGELINA TRINITY
SAN AUGUSTINE SABINE
BELL
SCHLEICHER PECOS CROCKETT SUTTON TERRELL
BURNET WILLIAMSON
6
MADISON WALKER POLK SAN JACINTO TYLER
JASPER NEWTON
BRAZOS
KIMBLE GILLESPIE BLANCO TRAVIS
BURLESON GRIMES WASHINGTON AUSTIN WALLER
HARDIN MONTGOMERY LIBERTY
LEE BASTROP FAYETTE
PRESIDIO BREWSTER
VAL VERDE
EDWARDS REAL
KERR KENDALL BANDERA COMAL
HAYS
CALDWELL
10
BRAZORIA
4
ORANGE
JEFFERSON
CHAMBERS
HARRIS
KINNEY
UVALDE
MEDINA
19
BEXAR ATASCOSA MCMULLEN
COLORADO GUADALUPE GONZALES LAVACA WHARTON WILSON KARNES GOLIAD DE WITT
FORT BEND GALVESTON
MAVERICK
ZAVALA
FRIO
23
VICTORIA
JACKSON MATAGORDA
CALHOUN
DIMMIT
LA SALLE
BEE LIVE OAK
REFUGIO ARANSAS
1. Abilene 2. Amarillo 3. Austin-Round Rock 4. Beaumont-Port Arthur 5. Brownsville-Harlingen 6. College Station-Bryan 7. Corpus Christi 8. Dallas-Fort Worth-Arlington 9. El Paso 10. Houston-Sugar Land-Baytown 11. Killeen-Temple-Fort Hood 12. Laredo 13. Longview
14. Lubbock 15. McAllen-Edinburg-Mission 16. Midland 17. Odessa 18. San Angelo 19. San Antonio 20. Sherman-Denison 21. Texarkana 22. Tyler 23. Victoria 24. Waco 25. Wichita Falls
12
WEBB ZAPATA
SAN PATRICIO JIM WELLS
DUVAL
NUECES KLEBERG
7
JIM HOGG
BROOKS
KENEDY
STARR
15
WILLACY CAMERON
HIDALGO
5
Prepared by the Labor Market and Career Information Department, TWC
Edited by Real Estate Center at Texas A&M University
HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
TABLE OF CONTENTS DEMOGRAPHICS ......................................................................................1 EDUCATION .............................................................................................8 EMPLOYMENT ...................................................................................... 11 ECONOMY ............................................................................................. 18 INFRASTRUCTURE ................................................................................ 22 MULTIFAMILY ....................................................................................... 23 HOUSING ............................................................................................... 26 RETAIL ................................................................................................... 41 HOTEL ................................................................................................... 43 OFFICE................................................................................................... 45 INDUSTRIAL .......................................................................................... 50 DEVELOPMENT LAND ........................................................................ 52
HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
Houston-Sugar Land-Baytown Market Overview 2008
Demographics
Houston-Sugar Land-Baytown Population* Percent Year Population Change 1996 4,334,020 1997 4,427,401 2.2 1998 4,534,979 2.4 1999 4,644,526 2.4 2000 4,715,407 1.5 2001 4,845,089 2.8 2002 4,968,059 2.5 2003 5,074,184 2.1 2004 5,176,667 2.0 2005 5,280,077 2.0 2006 5,539,949 4.9 2007 5,628,101 1.6
* July 1 population estimates Source: U.S. Census Bureau
County Austin Brazoria Chambers Fort Bend Galveston Harris Liberty Montgomery San Jacinto Waller
County Population* Growth Growth 1997-2007 1997 2007 (in percent) 22,340 26,610 19.1 225,381 294,233 30.5 24,358 28,771 18.1 312,547 509,822 63.1 242,712 283,987 17.0 3,229,338 3,935,855 21.9 65,527 75,434 15.1 255,557 412,638 61.5 20,191 24,818 22.9 29,450 35,933 22.0
* July 1 population estimates Source: U.S. Census Bureau
____________________________________________________________________ 1
HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
Area Cities With 10,000 or More Residents 1990 Growth 1990-2000 2000 Population Population (percent) City Alvin 19,220 21,413 11.4 Angleton 17,140 18,130 5.8 Baytown 63,850 66,430 4.0 Bellaire 13,842 15,642 13.0 Conroe 27,610 36,811 33.3 Deer Park 27,652 28,520 3.1 Dickinson 9,497 17,093 80.0 Freeport 11,389 12,708 11.6 Friendswood 22,814 29,037 27.3 Galena Park 10,033 10,592 5.6 Galveston 59,070 57,247 -3.1 Houston 1,630,553 1,953,631 19.8 Humble 12,060 14,579 20.9 Jacinto City 9,343 10,302 10.3 Katy 8,005 11,775 47.1 La Marque 14,120 13,682 -3.1 La Porte 27,910 31,880 14.2 Lake Jackson 22,776 26,386 15.9 League City 30,159 45,444 50.7 Missouri City 36,176 52,913 46.3 Pasadena 119,363 141,674 18.7 Pearland 18,697 37,640 101.3 Richmond 9,801 11,081 13.1 Rosenberg 20,183 24,043 19.1 South Houston 14,207 15,833 11.4 Stafford 8,397 15,681 86.7 Sugar Land 24,529 63,328 158.2 Texas City 40,822 41,521 1.7 West University Place 12,920 14,211 10.0
Source: U.S. Census Bureau
____________________________________________________________________ 2
HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
Texas Metropolitan Area Population* Change Metropolitan Area Austin-Round Rock McAllen-Edinburg-Mission Laredo Dallas-Fort Worth-Arlington Houston-Sugar Land-Baytown Brownsville-Harlingen San Antonio Texas Tyler Sherman-Denison El Paso College Station-Bryan Amarillo Killeen-Temple-Fort Hood Waco Midland Longview Lubbock Texarkana Victoria Odessa Corpus Christi San Angelo Abilene Beaumont-Port Arthur Wichita Falls
* July 1 population estimates Source: U.S. Census Bureau
1997 1,111,264 519,903 177,140 4,770,420 4,427,401 318,281 1,628,676 19,740,317 168,531 105,122 665,066 176,098 219,752 321,821 207,991 116,826 192,139 247,658 128,258 109,417 121,749 402,504 105,261 157,405 381,675 151,480
2007 1,598,161 710,514 233,152 6,145,037 5,628,101 387,210 1,990,675 23,904,380 198,705 118,675 734,669 203,371 242,240 370,008 228,123 126,408 203,611 267,211 134,215 113,797 129,570 414,376 108,085 159,343 376,241 148,148
Percent Change 43.8 36.7 31.6 28.8 27.1 21.7 22.2 21.1 17.9 12.9 10.5 15.5 10.2 15.0 9.7 8.2 6.0 7.9 4.6 4.0 6.4 2.9 2.7 1.2 -1.4 -2.2
____________________________________________________________________ 3
HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
Houston-Sugar Land-Baytown MSA Projected Population Year 2000 2005 2010 2015 2020 2025 2030 2035 2040 Texas State Data Center (Scenario 0.5) 4,715,407 5,121,006 5,545,165 5,987,475 6,444,638 6,917,769 7,402,101 7,896,871 8,400,148 Texas Water Development Board 4,715,407 5,623,068 6,538,439 7,500,923 8,472,303
Sources: Texas State Data Center (2006 projection) and Texas Water Developm ent Board (2006 projection)
Texas Metropolitan Area Population Growth Forecast, 2000 - 2020
Texarkana Wichita Falls Beaumont-Port Arthur Abilene San Angelo Sherman-Denison Longview Lubbock Midland Tyler Waco Odessa Victoria College Station-Bryan Amarillo San Antonio Corpus Christi Texas Killeen-Temple-Fort Hood Houston-Sugar Land-Baytown El Paso Dallas-Fort Worth-Arlington Brownsville-Harlingen Austin-Round Rock McAllen-Edinburg-Mission Laredo
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Source: Texas State Data Center – Scenario 0.5 (2006 projection)
____________________________________________________________________ 4
HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
Household Composition Houston Brazoria PMSA MSA Average household size (2000) 2.82 2.82 Population younger than 18 (2000, in percent) 29.2 28.6 Population 65 and older (2000, in percent) 7.4 8.8
Source: U.S. Census Bureau (1999 definition)
Galveston MSA 2.60 26.7 11.1
Texas 2.74 28.2 9.9
Distribution by Race and Hispanic or Latino Origin, 2000 (in percent) Houston Brazoria GalvestonPMSA MSA Texas City MSA Texas White 58.7 77.1 72.7 71.0 Black 18.5 8.5 15.4 11.5 Asian 5.1 2.0 2.1 2.7 American Indian 0.4 0.5 0.5 0.6 Other 14.2 9.6 7.2 11.7 Two or more races 3.0 2.2 2.1 2.5 Hispanic (of any race) 32.9 22.8 18.0 32.0
Source: U.S. Census Bureau (1999 definition)
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HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
Texas Migration Patterns 2007
Data is based on Atlas Van Lines Interstate and Cross-Border Household Goods Moves per calendar year. Atlas analyzes data in January on the origins and destinations of the company’s interstate moves during the prior 12 months.
Year 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998
Inbound / Outbound 8,831 6,665 9,714 6,812 9,525 7,210 8,644 7,442 8,075 6,920 7,723 6,778 9,030 7,584 10,063 8,659 8,718 7,945 10,075 7,965
Source: Atlas Van Lines Jan-2008 http://www.atlasworldgroup.com/migration/
____________________________________________________________________ 7
HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
Houston-Sugar Land-Baytown Market Overview 2008
Education
Educational Attainment, Persons Age 25 and Older (in percent) High school Some college, Associate's Bachelor's Master's Doctorate degree degree degree degree County graduate no degree Austin 32.3 18.9 6.0 12.6 3.1 0.5 Brazoria 27.2 25.8 6.9 13.8 3.8 0.8 Chambers 32.5 26.9 5.5 8.4 2.8 0.2 Fort Bend 19.4 21.8 6.2 25.2 8.4 1.3 Galveston 26.4 25.5 6.3 14.7 5.0 1.2 Harris 21.6 21.3 4.7 17.9 5.8 1.0 Liberty 36.2 22.1 3.2 5.3 1.8 0.3 Montgomery 27.4 24.0 4.9 17.7 5.3 0.8 San Jacinto 38.6 21.9 2.5 6.3 2.2 0.3 Waller 31.4 22.3 3.3 11.0 4.2 0.8 Texas 24.8 22.4 5.2 15.6 5.2 0.8
Source: U.S. Census Bureau 2000
Educational Level, Persons Age 25 and Older (in percent) Houston-GalvestonLevel of Education Brazoria CMSA Texas High School Graduate or Higher 76.4 79.2 Bachelor's Degree or Higher 26.5 23.9
Source: U.S. Census Bureau 2000 (1999 definition)
Educational Level, Persons Age 25 and Older 2000 (in percent) Level of Education High School Graduate or Higher Bachelor's Degree or Higher
Source: U.S. Census Bureau 2000
Brazoria MSA 79.5 19.6
Texas 75.7 23.2
Educational Level, Persons Age 25 and Older 2000 (in percent) Level of Education High School Graduate or Higher Bachelor's Degree or Higher
Source: U.S. Census Bureau 2000
Galveston MSA 80.9 22.7
Texas 79.2 23.9
____________________________________________________________________ 8
HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
Local College and University Enrollment, Fall School 2003 2004 Alvin Community College 4,049 3,933 Brazosport College 3,679 3,503 College of the Mainland 3,919 3,948 Houston Community College 33,631 35,982 Lee College 6,233 5,860 Lone Star College - Cy-Fair* 6,683 8,451 Lone Star College - Kingwood* 6,060 6,405 Lone Star College - Montgomery* 6,712 7,180 Lone Star College - North Harris* 10,466 10,106 Lone Star College - Tomball* 7,420 7,342 Prairie View A&M University 7,808 8,350 Rice University 4,959 5,112 San Jacinto College Central Campus 11,540 11,977 San Jacinto College North Campus 4,981 5,479 San Jacinto College South Campus 7,582 7,971 Texas A&M University at Galveston 1,620 1,615 Texas Southern University 10,888 11,635 University of Houston 35,066 35,180 University of Houston - Clear Lake 7,776 7,785 University of Houston - Downtown 10,974 11,408 University of St. Thomas 4,826 3,562
Source: Texas Higher Education Coordinating Board
* Previously know n as North Harris Montgomery County Community College District - Jan-2008
Semester 2005 2006 3,828 3,983 3,604 3,808 3,992 3,834 35,595 37,192 4,576 5,268 9,799 10,772 6,837 6,986 7,971 8,155 10,878 10,407 7,600 7,749 7,912 8,006 5,114 5,119 12,627 12,378 5,529 5,380 8,554 8,585 1,661 1,553 11,478 11,224 34,582 34,334 7,826 7,706 11,433 11,449 3,627 3,524
2007 4,091 3,751 3,521 36,786 5,734 11,751 7,330 8,798 10,834 8,132 8,382 5,243 12,350 5,159 8,742 1,614 9,540 34,663 7,522 11,793 3,273
____________________________________________________________________ 9
Texas Higher Education Coordinating Board Higher Education Locator Map (HELM) Community and Technical Colleges
Lone Star College-Tomball Lone Star College-North Harris
Lone Star CollegeWillow Chase Center
Lone Star College-Parkway Center
Houston CCS-Central Campus Lone Star College-Carver Center Lee College-Crosby Houston CCS-Northwest Campus San Jacinto CD-North Lone Star College-Fairbanks Center Lee College
Lone Star College-Cy-Fair Houston CCS-Northeast Campus
San Jacinto CD-Central
Houston CCS-Southwest Campus
San Jacinto CD-Central (La Porte)
Houston CCS-Southeast Campus
San Jacinto CD-South
Source: Texas Higher Education Coordinating Board
Public Universities
University of Houston System at Cinco Ranch Sam Houston State University Teaching Site (Tomball)
Prairie View A&M University College of Nursing-Houston Center
University of Houston-Downtown
University of Houston
Texas Southern University
University of Houston-Clear Lake
Texas Women’s University Houston Center Source: Texas Higher Education Coordinating Board
http://www.thecb.state.tx.us/InteractiveTools/HELM/
HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
Houston-Sugar Land-Baytown Market Overview 2008
Employment
Greater Houston Top Ten Employers Employer Sector Wal-Mart Stores Retail Administaff * Professional employer services Memorial Hermann Healthcare System Health care Continental Airlines ** Airline University of Texas M.D. Anderson Cancer Center Health care Exxon Mobil Corp. *** Oil and gas Kroger Co. Grocery Shell Oil Co. Oil and gas The Methodist Hospital System Health care H-E-B Grocery Employees 28,780 20,816 18,935 18,007 16,064 14,835 13,201 11,918 11,092 9,405
*Includes Administaff corporate employees and the w orksite employees at client companies. Worksite employees are coemployed by both Administaff and its client companies. **Figure does not include ExpressJet Airlines. ***Exxon Mobil restated its employment for 2006 from 16,321 to 15,210. See Market Report 2007. Source: Houston Chronicle 2007
Greater Houston Top Ten Private Employers Employer Sector Wal-Mart Stores Retail Administaff * Professional employer services Memorial Hermann Healthcare System Health care Continental Airlines ** Airline Exxon Mobil Corp. *** Oil and Gas Kroger Co. Grocery Shell Oil Co. Oil and Gas The Methodist Hospital System Health care H-E-B Grocery Baylor College of Medicine Health care
Employees 28,780 20,816 18,935 18,007 14,835 13,201 11,918 11,092 9,405 8,901
*Includes Administaff corporate employees and the w orksite employees at client companies. Worksite employees are coemployed by both Administaff and its client companies. **Figure does not include ExpressJet Airlines. ***Exxon Mobil restated its employment for 2006 from 16,321 to 15,210. See Market Report 2007. Source: Houston Chronicle 2007
___________________________________________________________________ 11
HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
Galveston Top Ten Employers Employer University of Texas Medical Branch American National Insurance Company Galveston Independent School District Landry's Restaurants * County of Galveston City of Galveston Moody Gardens Fertitta Hospitality ** Texas A&M University at Galveston Gulf Copper Sector Education Insurance Education Restaurant Government Government Hospitality Hospitality Education Manufacturing Employees 10,280 1,367 1,221 1,151 913 888 859 650 399 380
*Includes: Landry's Seafood House; Willie G's; Joe's Crab Shack (2 locations); Rainforest Café; Fish Tales; Fuddruckers; Landry's Oyster Bar; Saltgrass Steakhouse; Fisherman's Wharf; Phoenix Bakery **Includes: San Luis Resort & Conference Center; Hilton Resort; IHOP Source: Galveston Econom ic Developm ent Partnership Sept-2007
Texas City - La Marque Top Ten Employers Employer BP Texas City ISD Mainland Medical Center La Marque ISD Sterling Chemicals, Inc. Union Carbide Corporation (subsidiary of Dow Chemical) BP Chemical (Aromatics & Acetyls) Gulf Greyhound Park College of the Mainland Marathon Petroleum Company, LLC Sector Chemicals Education Health care Education Chemicals Chemicals Chemicals Entertainment Education Chemicals Employees 1,800 879 750 525 450 450 350 350 280 260
Source: Texas City - La Marque Cham ber of Com m erce Jan-2008
Texas City - La Marque Top Ten Private Employers Employer BP Mainland Medical Center Sterling Chemicals, Inc. Union Carbide Corporation (subsidiary of Dow Chemical) BP Chemical (Aromatics & Acetyls) Gulf Greyhound Park Marathon Petroleum Company, LLC Macy's Sam's Club International Specialty Products Sector Chemicals Health care Chemicals Chemicals Chemicals Entertainment Chemicals Retail Wholesale outlet Chemicals Employees 1,800 750 450 450 350 350 260 203 180 170
Source: Texas City - La Marque Cham ber of Com m erce Jan-2008
___________________________________________________________________ 12
HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
Houston-Sugar Land-Baytown MSA Nonfarm Employment Percent Year Employment Change 1997 2,064,400 1998 2,167,400 5.0 1999 2,202,000 1.6 2000 2,254,600 2.4 2001 2,293,600 1.7 2002 2,288,500 -0.2 2003 2,274,200 -0.6 2004 2,289,800 0.7 2005 2,350,200 2.6 2006 2,446,000 4.1 2007 2,549,600 4.2
Source: Texas Workforce Com m ission and Real Estate Center at Texas A&M University
Employment Growth by Industry Houston-Sugar LandBaytown MSA Employment growth 2007 (Percent Change) 4.2 Unemployment Rate 2007 (Percent Change) 4.3 Net Job Change in 2007 103,600 2007 Employment Growth by Sector (Percent Change) Natural Resources and Mining and Construction 7.9 Manufacturing 4.3 Trade, Transportation, and Utilities 3.8 Information 2.2 Financial Activities 2.9 Professional and Business Services 6.3 Educational and Health Services 4.3 Leisure and Hospitality 4.4 Government 1.6
Texas 3.0 4.3 305,900 7.5 0.9 2.9 -0.7 3.0 5.3 3.1 3.9 0.9
Source: Texas Workforce Com m ission and Real Estate Center at Texas A&M University
___________________________________________________________________ 13
HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
Texas Metropolitan Area Nonfarm Employment Change Metropolitan Area Sherman-Denison Wichita Falls San Angelo Beaumont-Port Arthur Abilene Victoria Texarkana Corpus Christi El Paso Lubbock Amarillo Waco Odessa Dallas-Fort Worth-Arlington Texas Longview Killeen-Temple-Fort Hood College Station-Bryan Tyler San Antonio Houston-Sugar Land-Baytown Brownsville-Harlingen Austin-Round Rock Laredo McAllen-Edinburg-Mission Midland 1997 43,900 61,300 43,900 157,400 62,000 46,200 50,800 158,800 243,100 114,900 97,800 94,800 50,000 2,452,900 8,608,500 79,500 100,600 74,600 76,900 684,400 2,064,400 97,400 566,300 60,200 133,900 133,900 2007 43,800 62,500 44,900 164,300 65,700 50,900 56,200 176,000 270,900 128,500 111,900 108,800 59,400 2,941,700 10,359,200 95,800 121,400 90,200 93,400 832,400 2,549,600 123,600 757,300 86,200 210,200 210,200 Percent Change -0.2 2.0 2.3 4.4 6.0 10.2 10.6 10.8 11.4 11.8 14.4 14.8 18.8 19.9 20.3 20.5 20.7 20.9 21.5 21.6 23.5 26.9 33.7 43.2 57.0 57.0
Source: Texas Workforce Com m ission and Real Estate Center at Texas A&M University
___________________________________________________________________ 14
HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
Metropolitan Area Nonfarm Employment Change 1997-2007
Midland McAllen-Edinburg-Mission Laredo Austin-Round Rock Brownsville-Harlingen Houston-Sugar Land-Baytown San Antonio Tyler College Station-Bryan Killeen-Temple-Fort Hood Longview Texas Dallas-Fort Worth-Arlington Odessa Waco Amarillo Lubbock El Paso Corpus Christi Texarkana Victoria Abilene Beaumont-Port Arthur San Angelo Wichita Falls Sherman-Denison
0%
10%
20%
30%
40%
50%
60%
Source: Texas Workforce Commission and Real Estate Center at Texas A&M University
Average Hourly Wage 2006
Dallas-Fort Worth-Arlington Austin-Round Rock Houston-Sugar Land-Baytown College Station-Bryan Texas Midland Beaumont-Port Arthur San Antonio Lubbock Odessa Victoria Amarillo Tyler Waco Sherman-Denison Corpus Christi Longview Texarkana Killeen-Temple-Fort Hood El Paso Wichita Falls San Angelo Abilene Laredo McAllen-Edinburg-Mission Brownsville-Harlingen
$12.57 $13.76 $13.59 $13.00 $16.08 $16.07 $15.98 $15.72 $15.46 $15.34 $15.27 $15.12 $15.09 $15.09 $14.98 $14.86 $14.86 $14.67 $14.66 $14.39 $17.49 $17.25 $18.44 $19.19 $19.17 $19.07
$10.00
Source: Texas Workforce Commission
$12.00
$14.00
$16.00
$18.00
$20. 00
___________________________________________________________________ 15
HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
Houston-Sugar Land-Baytown MSA Unemployment Rate
8
7
6
5
Percent
4
3
2
1
0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Source: Texas Workforce Commission and Real Estate Center at Texas A&M University
Distribution of Employment in Major Categories Houston-Sugar Land-Baytown MSA
3,000,000
2,500,000
Total Annual Jobs
2,000,000
1,500,000
1,000,000
500,000
0 2003 2004 2005 Manufacturing Information Professional and Business Services Leisure and Hospitality 2006 2007 Natural Resources and Mining and Construction Trade, Transportation, and Utilities Financial Activities Educational and Health Services Government Source: Texas Workforce Commission and Real Estate Center at Texas A&M University
___________________________________________________________________ 16
HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
Nonfarm Employment Growth Houston-Sugar Land-Baytown MSA
6.0
5.0
Percent Change from Previous Year
4.0
3.0
2.0
1.0
0.0
-1.0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Source: Texas Workforce Commission and Real Estate Center at Texas A&M University
___________________________________________________________________ 17
HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
Houston-Sugar Land-Baytown Market Overview 2008
Economy
Year 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Total Sales $46,634,962,817 $55,622,448,573 $56,958,592,493 $56,756,722,209 $60,627,939,351 $61,924,673,890 $55,240,334,240 $61,702,957,269 $65,709,695,373 $74,745,601,885 $80,373,169,141 State Average 2006: Sales per Capita $10,760 $12,563 $12,560 $12,220 $12,857 $12,781 $11,119 $12,160 $12,693 $14,156 $14,508 $15,527
* 2007 data not available as of January 2008. Source: Texas Com ptroller's Office
Gross Retail Sales per Capita 2006
Brownsville-Harlingen Texarkana McAllen-Edinburg-Mission El Paso Wichita Falls Corpus Christi College Station-Bryan Sherman-Denison Waco San Antonio Beaumont-Port Arthur San Angelo Victoria Laredo Abilene Fort Worth-Arlington MD Houston-Sugar Land-Baytown Austin-Round Rock Killeen-Temple-Fort Hood Longview Tyler Texas Lubbock Amarillo Odessa Dallas-Plano-Irving MD Midland $5,000 $7,000 $9,000 $11,000 $13,000 $15,000 $17,000 $19,000 $21,000
Source: Texas Comptroller's Office
___________________________________________________________________ 18
Houston Economic Indicators 3-Jan-08 A Service of the Greater Houston Partnership
N = New Since Previous Issue R = Revised
Month Most Recent 1,811 92.19 6.97 57.8 4,366,902 644,562,000 156,502,000 488,060,000 404,623,090 150,776,900 92,933,438 149,453,762 11,458,990 5,772 150,000 52,217 2,557,700 509,600 2,048,100 4.0 4.1 4.5 12,715 60,350 3,315,643 4,186,278 3,605,927 580,351 78,185 72,579 37,171 35,408 25,129 10,174 14,955 20,727.2 184.922 210.177 73.9 119.07 87.95 2,474 906
MONTHLY DATA
Year Earlier 1,718 62.31 7.32 58.9 4,078,660 1,053,849,000 433,512,000 620,337,000 330,922,558 80,545,192 76,441,422 163,582,158 10,353,786 6,428 147,500 46,071 2,498,900 491,300 2,007,600 4.3 4.4 4.3 11,629 61,534 3,290,008 4,176,434 3,620,725 555,709 79,880 67,340 33,300 34,040 27,178 10,998 16,180 18,911.1 180.4 201.5 72.1 108.86 78.52 2,464 1,004 9.3 -1.9 0.8 0.2 -0.4 4.4 -2.1 7.8 11.6 4.0 -7.5 -7.5 -7.6 9.6 2.5 4.3 % Change 5.4 48.0 -4.8 -1.9 7.1 -38.8 -63.9 -21.3 22.3 87.2 21.6 -8.6 10.7 -10.2 1.7 13.3 2.4 3.7 2.0 Most Recent
YEAR-TO-DATE TOTAL OR AVERAGE*
Year Earlier 1,768 * 72.72 * 6.90 * 60.6 * 47,861,646 12,515,634,000 4,252,262,000 8,263,372,000 5,082,023,783 1,714,698,625 1,349,677,071 1,866,564,791 151,083,296 77,218 151,324 * 50,623 * 2,515,500 * 500,600 * 2,014,900 * 4.2 * 4.3 * 4.6 * 12,391 * 64,786 * 37,126,052 47,458,988 40,395,947 7,063,041 907,411 784,156 405,273 378,883 333,389 139,139 194,250 39,126.4 183.424 * 207.098 * 69.7 * 112.12 * 78.16 * 29,187 11,766 1,649 * 66.20 * 6.47 * 62.6 * 47,746,858 12,864,222,000 3,808,357,000 9,055,865,000 4,370,113,258 1,374,472,741 1,041,048,246 1,774,723,237 179,869,034 80,438 148,200 * 44,086 * 2,440,300 * 480,100 * 1,960,200 * 5.1 * 5.0 * 4.6 * 12,369 * 90,849 * 36,921,296 46,765,353 39,989,853 6,775,500 889,246 743,200 370,705 372,495 328,017 144,159 183,858 35,677.3 180.9 * 201.6 * 69.9 * 104.59 * 73.08 * 22,520 9,429 0.2 -28.7 0.6 1.5 1.0 4.2 2.0 5.5 9.3 1.7 1.6 -3.5 5.7 9.7 1.4 2.7 % Change 7.2 9.8 6.6 -3.3 0.2 -2.7 11.7 -8.8 16.3 24.8 29.6 5.2 -16.0 -4.0 2.1 14.8 3.1 4.3 2.8
ENERGY
U.S. Active Rotary Rigs Spot Crude Oil Price ($/bbl, West Texas Intermediate) Spot Natural Gas ($/MMBtu, Henry Hub) Dec '07 Dec '07 N Nov '07 Nov '07 Nov '07 Nov '07 Nov '07 Nov '07 Nov '07 Nov '07 Nov '07 Nov '07 Nov '07 Nov '07 Nov '07 Nov '07 Nov '07 Nov '07 Nov '07 Nov '07 Nov '07 Nov '07 Nov '07 Nov '07 Nov '07 Nov '07 Nov '07 Nov '07 Nov '07 Nov '07 Nov '07 Nov '07 Nov '07 Nov '07 Nov '07 2Q07 Oct '07 Nov '07 Oct '07 Oct '07 Oct '07 Dec '07 Dec '07
UTILITIES AND PRODUCTION
Houston Purchasing Managers Index Nonresidential Electric Current Sales (Mwh, CNP Service Area)
CONSTRUCTION
Total Building Contracts ($, Houston MSA) Nonresidential Residential Building Permits ($, City of Houston) New Nonresidential Nonresidential Additions/Alterations/Conversions New Residential Residential Additions/Alterations/Conversions Multiple Listing Service (MLS) Activity Closings Median Sales Price - SF Detached Active Listings
EMPLOYMENT (Houston-Sugar Land-Baytown MSA)
Nonfarm Payroll Employment Goods Producing (Natural Resources/Mining/Const/Mfg) Service Providing Unemployment Rate (%) - Not Seasonally Adjusted Houston-Sugar Land-Baytown MSA Texas U.S. Unemployment Insurance Claims (Gulf Coast WDA) Initial Claims Continuing Claims
TRANSPORTATION
Port of Houston Authority Shipments (Short Tons) Air Passengers (Houston Airport System) Domestic Passengers International Passengers Landings and Takeoffs Air Freight (000 lb) Enplaned Deplaned
CONSUMERS
New Car and Truck Sales (Units, Houston MSA) Cars Trucks, SUVs and Commercials Total Retail Sales ($000,000, Houston MSA, NAICS Basis) Consumer Price Index for All Urban Consumers ('82-'84=100) Houston-Galveston-Brazoria CMSA United States Hotel Performance (Harris County) Occupancy (%) Average Room Rate ($) Revenue Per Available Room
9.4 12.0 0.4 -9.8
7.2 7.0 29.6 24.8
POSTINGS AND FORECLOSURES
Postings (Harris County) Foreclosures (Harris County)
SOURCES
Rig Count Spot WTI, Spot Natural Gas Houston Purchasing Managers Index Electricity Building Construction Contracts City of Houston Building Permits MLS Data Employment, Unemployment, UI Claims Port Shipments Aviation New Car and Truck Sales Retail Sales Consumer Price Index Hotels Postings, Foreclosures Baker Hughes Incorporated U.S. Energy Information Agency National Association of Purchasing Management - Houston, Inc. CenterPoint Energy (CNP) McGraw-Hill Construction Building Permit Department, City of Houston Houston Association of Realtors Texas Workforce Commission Port of Houston Authority, U.S. Dept. of Commerce (foreign) Aviation Department, City of Houston TexAuto Facts Report , InfoNation, Inc., Sugar Land TX State Comptroller's Office U.S. Bureau of Labor Statistics PKF Consulting/Hospitality Asset Advisors International Foreclosure Information & Listing Service, Inc.
Texas City-La Marque Chamber of Commerce Community Profile 2008
Economic Information
Utility Trends in Texas City
20,000 18,000 16,000 14,000 12,000 10,000 1991 Electric 14,293 12,420 10,594 13,011 10,511 1996 Gas 10,985 2001 Water 17,769 16,701 18,081
Utility Trends in La Marque
6,500 6,000 5,500 5,000 4,500 4,000 1991 Electric 1996 Gas 2001 Water 4,874 4,543 4,918 4,591 5,000 4,648 6,093 5,669 6,260
Utility services are delivered to Texas City - La Marque consumers by a number of public and private sector agencies. Electricity is provided by First Choice, Texas-New Mexico Power, and Reliant Energy. Reliant Energy/Entex provides natural gas to residents; and Southwestern Bell and Verizon are the primary sources of local phone service. Water and wastewater needs are met by local municipal facilities. Water is provided by the Galveston County Water Authority. Five-year trends in the number of utility connections are shown above. Recent totals are shown below.
Utility Connection Data
2006 2005 2004 2003 2002 2001 2000
Electric (Texas New Mexico Power) Texas City La Marque
19,740 19,417 19,060 18,213 17,813 18,081 17,604 6,353 6,229 6,259 6,823 6,403 6,260 6,297
Gas (CenterPoint Energy) Texas City LaMarque
10,424 10,266 9,981 10,609 10,606 10,985 10,925 4,445 4,254 4,170 4,402 4,423 4,648 4,636
Water (Cities) Texas City La Marque
13,834 13,653 13,386 13,359 14,652 14,293 13,327 5,937 5,885 5,864 5,834 5,075 5,811 5,820
Total Bank Deposits
Year Texas City La Marque 2007(June) $299,310,000. $80,599,076. 2006 $333,764,000. $86,306,000. 2005 $331,459,000. $56,573,938. 2004 $305,758,000. $81,065,000. 2003 $233,012,395.* $42,439,661.* 2002 $339,621,912.* $44,940,513.* 2001 $313,999,388. $50,208,827.* 2000 $212,528,890. $109,945,378. 1999 $370,786,082. $100,820,471. 1998 $237,372,329. $104,060,318. 1997 $236,910,725. $63,505,853. 1996 $167,518,294. $64,290,278. 1995 $217,888,107. $70,139,075. 1994 $172,617,996. $74,025,000. * Does not include all banks
Bank Deposits June 2007
Bank of America Guaranty Bank La Marque Guaranty Bank Texas City Mainland Bank Texas City Moody National Bank Amegy Bank Texas First Bank Regions Bank WoodForest Bank
Source: www.fdic.gov
$24,318,000. $46,578,000. $54,538,000. $65,933,000. $46,952,000. $14,859,000. $129,317,000. $75,115,000. $5,477,000.
Credit Unions September 2007
Amoco Federal Credit Union Associated Credit Union of Texas Coastal Community Federal Credit Union Gulf Shore Federal Credit Union JSC Credit Union* Marathon Republic Employees Federal Credit Union Texas City Teachers Credit Union Texas Dow Employees Credit Union Deposits $379,543,927 $196,114,903 $29,242,280 $8,978,932 $590,578,281 $6,784,649 $6,667,543 $671,882,705
Source: www.ncua.gov
Assets $440,285,538 $227,263,612 $31,969,392 $9,982,801 $666,951,263 $8,200,625 $8,240,361 $1,062,920,378
Loans $236,244,723 $184,884,990 $ 24,128,598 $ 4,407,039 $253,840,990 $ 5,696,978 $ 3,508,114 $ 896,876,648
Texas City—La Marque Chamber of Commerce Page 16
http://www.texascitychamber.com/uploads/Profile2008updatedby_page.pdf Texas City—La Marque Chamber of Commerce
Economic Information
Accountant .................................................... $19.01 Bookkeeper ................................................... $12.34 Chemical Plant Operator .............................. $22.82 Common Laborer .......................................... $11.60 Draftsman...................................................... $18.83 Electrician...................................................... $20.06 Heavy Equipment Operator.......................... $11.06 FireFighters ................................................... $13.59 Machinist ....................................................... $17.09 Office Clerk ...................................................... $9.96 Painters.......................................................... $13.93 Secretary ....................................................... $12.79 Truck Driver ................................................... $13.97 Welder............................................................ $14.34
* Source TX Workforce Commission (www.twc.state.tx.us)
Texas City-La Marque Chamber of Commerce Community Profile 2008
Median Hourly Wage for Selected Occupations*
Texas City 2000 1990 Median Family Gross Income $42,393 $30,689 Per Capita Income $17,057 $14,107 Median Age 35.5 years 32.6 years Radius of labor drawing area 60 miles 60 miles La Marque 2000 1990 Median Family Gross Income $39,081 $31,915 Per Capita Income $17,518 $15,370 Median Age 37.7 years 34.4 years Radius of labor drawing area 40 miles 40 miles
Area Employment as of November 2007
Civilian Labor Force Texas City 21,078 La Marque 7,900 Galveston County 146,530 Total Employment 20,182 7,091 140,340 Total Unemployment 896 809 6,197 Unemployment Rate 4.3% 9.8% 4.2%
Source: Texas Workforce Labor Market Information Department, Texas Workforce Commission online (www.twc.state.tx.us
Building Permits
Texas City
2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 $82,411,565 $47,005,905. $51,756,971. $48,871,350 $46,349,097 $26,978,025 $31,868,951 $41,184,724 $22,998,029 $33,264,980 $26,978,663 $36,376,156
Retail Sales
Texas City
2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 $796,398,730. $591,014,307. $591,492,935 $526,395,742 $581,164,407 $594,558,677 $560,796,971 $594,445,327 $644,743,667 $591,164,067 $620,190,950
La Marque
$24,490,559. $ 19,740,205. $14,546,548 $35,026,938 $5,836,438 $7,626,967 $4,765,463 $4,616,598 $8,871,751 $4,595,512 $3,272,187
La Marque
$ 239,124,420. $151,766,505. $252,505,838 $117,567,252 $75,376,782 $80,442,211 $81,771,900 $81,629,250 $82,585,698 $80,416,270 $82,855,467
JUNE
345 new housing starts in Texas City and 147 new housing starts in La Marque In 2006
Development Status Based on Land Area*
*Source: Galveston Central Appraisal District
The Property in La Marque 2005 Land Use
The Property in Texas City 2005 Land Use
Texas City—La Marque Chamber of Commerce
http://www.texascitychamber.com/uploads/Profile2008updatedby_page.pdf
HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
Houston-Sugar Land-Baytown Market Overview 2008
Infrastructure
Houston Airline Activity Airport Ellington Field (EFD) Enplaned (domestic) Deplaned (domestic) Total (domestic) George Bush Intercontinental (IAH) Enplaned (int'l & domestic) Deplaned (int'l & domestic) Total (int'l & domestic) Houston Hobby (HOU) Enplaned (domestic) Deplaned (domestic) Total (domestic)
Source: Houston Airport System
2003 42,114 38,192 80,306 17,003,336 17,148,006 34,151,342 3,901,871 3,901,459 7,803,330
2004 28,015 25,932 53,947 18,253,449 18,259,649 36,513,098 4,159,769 4,131,030 8,290,799
2005 0 0 0 19,868,437 19,846,381 39,714,818 4,152,111 4,105,048 8,257,159
2006 0 0 0 21,336,881 21,213,551 42,550,432 4,301,435 4,247,520 8,548,955
2007 1 1 2 21,579,024 21,400,183 42,979,207 4,427,334 4,392,187 8,819,521
Houston Air Cargo (in 000 lbs.) Airport 2003 2004 2005 George Bush Intercontinental (IAH) 728.0 770.0 753.3 Houston Hobby (HOU) 12.6 14.2 15.3
Source: Houston Airport System
2006 791.5 18.6
2007 836.5 17.2
Port of Houston Activity Total calls Total short tons (in millions)
Source: Port of Houston Authority
Port Statistics Houston 2004 2005 6,539 7,057 202.0 211.7
2006 7,548 214.9
2007 7,703 N/A
Port of Galveston Activity Total tonnage (in short tons) Total ships/rigs Total calls - cruise ships Passengers embarking Passengers disembarking
Source: Port of Galveston
Port Statistics Galveston 2004 2005 3,384,776 4,550,035 557 612 219 233 434,855 532,241 433,045 532,362
2006 6,217,668 718 255 616,939 616,198
2007 6,191,430 658 211 523,303 524,452
Port of Texas City Activity Total Net Tonnage Total Vessels Total Railroad Cars
Port Statistics Texas City 2004 2005 70,216,516 60,948,773 7,735 6,967 39,575 38,619
2006 50,157,424 6,006 41,499
2007 55,497,626 6,451 42,421
Source: Port of Texas City and Texas City Term inal Railw ay
___________________________________________________________________ 22
HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
Houston-Sugar Land-Baytown Market Overview 2008
Multifamily
Apartment Statistics 2007 Texas Metro Average $0.80 $0.89 92.8% 93.8%
Average rent per square foot Average rent for units built since 2000 Average occupancy Average occupancy for units built since 2000
Source: Apartm ent MarketData Research
Houston $0.81 $0.94 91.3% 93.5%
Galveston $0.82 $0.79 93.1% 93.2%
Houston Multifamily Building Permits
5+ Multifamily Building Permits
25,000
1999 MSA definition
20,000
15,000
Units
10,000
5,000
0
Source: U.S. Bureau of Census and Real Estate Center at Texas A&M University
2007 figure is a preliminary number.
___________________________________________________________________ 23
HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
Galveston-Texas City Multifamily Building Permits
5+ Multifamily Building Permits
600
500
400
Units
300
200
100
0 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2007 figure is a preliminary number.
p
Source: U.S. Bureau of Census and Real Estate Center at Texas A&M University
30,000
Houston Apartment Market Absorption 12-Month Ending
25,000
20,000
15,000
Square Feet
10,000
5,000
0
-5,000
-10,000
-15,000 4Q 2003 4Q 2004
Class A Source: O’Connor & Associates Class B
4Q 2005
Class C Class D
4Q 2006
Overall
4Q 2007
___________________________________________________________________ 24
HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
Houston Apartment Market Occupancy Rate
94%
92%
90%
88%
86%
84%
82%
80%
78% 4Q 2003 4Q 2004
Class A Source: O’Connor & Associates Class B
4Q 2005
Class C Class D
4Q 2006
Overall
4Q 2007
Houston Apartment Market Rental Rates
$1.20
$1.00
$0.80
Per Square Foot
$0.60
$0.40
$0.20
$0.00 4Q 2003 4Q 2004
Class A Source: O’Connor & Associates Class B
4Q 2005
Class C Class D
4Q 2006
Overall
4Q 2007
___________________________________________________________________ 25
HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
Houston-Sugar Land-Baytown Market Overview 2008
Housing
2007 Housing Affordability Index Required Median 2007 Median- Income to Family Priced Home Qualify Income $176,600 $43,355 $57,300 $174,400 $42,815 $57,300 $151,800 $37,267 $57,300 $171,300 $42,054 $57,300 $147,500 $36,286 $52,600 $217,800 $53,138 $59,000
MLS Fort Bend Co. Galveston Houston Montgomery Co. TEXAS United States
HAI* 1.32 1.34 1.54 1.36 1.45 1.11
HAI for First-Time Homebuyers** 0.87 1.03 1.01 0.92 1.03 0.63
* The HAI is the ratio of the median family income to the income required to buy the median-priced house using standard mortgage financing at the current interest rate. Standard financing is a fixed-rate, 30-year loan covering 80 percent of the cost of the home. A HAI of 1.00 indicates that the median family income is exactly equal to the required income to qualify for the standard loan to purchase the median-priced house. ** First-time home buyer is assumed to purchase a home equal to the first quartile home price using a 90% home loan at an interest rate 0.5 percent greater than the standard current rate. Source: Real Estate Center at Texas A&M University
Price Distribution of MLS Homes Sold, Houston Area (in percent) Price Range $29,999 or less 30,000 - 39,999 40,000 - 49,999 50,000 - 59,999 60,000 - 69,999 70,000 - 79,999 80,000 - 89,999 90,000 - 99,999 100,000 - 119,999 120,000 - 139,999 140,000 - 159,999 160,000 - 179,999 180,000 - 199,999 200,000 - 249,999 250,000 - 299,999 300,000 - 399,999 400,000 - 499,999 500,000 and more 2001 1.8 1.8 2.3 3.0 4.5 7.1 9.4 7.9 11.4 11.1 8.4 6.4 4.4 7.2 4.7 4.3 1.8 2.7 2002 1.7 1.5 1.9 2.5 3.7 5.0 7.9 8.3 11.9 11.5 9.4 7.0 4.8 7.7 5.2 4.9 2.0 3.0 2003 1.6 1.5 1.6 2.2 3.1 4.4 6.6 7.8 13.1 12.4 9.8 7.3 5.0 8.1 5.5 4.9 2.0 3.0 2004 1.4 1.4 1.6 2.0 2.8 4.1 6.0 7.5 13.8 13.1 9.8 7.3 5.2 8.0 5.3 5.3 2.0 3.4 2005 1.2 1.2 1.4 1.8 2.4 3.4 5.3 6.1 13.2 13.2 10.5 8.1 5.7 8.8 5.8 5.8 2.3 3.8 2006 1.0 1.2 1.3 1.6 2.1 3.0 4.1 5.2 12.3 13.4 10.9 8.7 6.1 9.6 6.1 6.5 2.7 4.3 2007 1.1 1.3 1.6 1.9 2.5 3.2 4.1 4.6 10.9 12.7 10.4 8.3 6.0 10.1 6.6 7.0 2.9 4.8
Source: Real Estate Center at Texas A&M University
___________________________________________________________________ 26
HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
Price Distribution of MLS Homes Sold, Fort Bend County Area (in percent) Price Range 2001 2002 2003 2004 2005 2006 $29,999 or less 0.2 0.2 0.3 0.2 0.1 0.1 30,000 - 39,999 0.3 0.5 0.3 0.2 0.2 0.1 40,000 - 49,999 0.4 0.5 0.4 0.4 0.4 0.2 50,000 - 59,999 1.1 0.6 0.5 0.6 0.4 0.3 60,000 - 69,999 2.0 1.4 1.0 1.0 0.8 0.7 70,000 - 79,999 5.2 2.8 2.1 2.2 1.5 1.1 80,000 - 89,999 8.0 6.2 4.5 3.7 3.3 2.2 90,000 - 99,999 7.0 7.4 5.9 5.8 4.3 3.8 100,000 - 119,999 10.8 10.8 12.0 12.6 11.7 9.6 120,000 - 139,999 12.7 12.5 13.1 14.1 12.7 12.6 140,000 - 159,999 11.4 12.2 13.5 12.6 13.3 12.7 160,000 - 179,999 8.7 9.9 10.6 10.0 10.9 12.4 180,000 - 199,999 6.7 6.8 7.1 7.4 7.9 8.4 200,000 - 249,999 10.6 11.1 11.4 11.5 12.7 12.4 250,000 - 299,999 6.4 7.0 7.0 7.0 7.6 8.3 300,000 - 399,999 5.1 6.1 6.4 6.8 7.2 8.7 400,000 - 499,999 1.7 1.7 2.0 1.9 2.7 3.6 500,000 and more 1.7 2.2 1.8 2.1 2.4 2.9
Source: Real Estate Center at Texas A&M University
2007 0.1 0.2 0.6 0.7 1.3 1.8 2.5 2.9 8.0 11.7 11.5 10.7 8.5 13.8 9.1 9.1 4.1 3.7
Price Distribution of MLS Homes Sold, Montgomery County Area (in percent) Price Range 2001 2002 2003 2004 2005 2006 2007 $29,999 or less 1.5 1.5 1.5 2.2 2.0 1.1 1.0 30,000 - 39,999 1.5 1.4 2.6 3.0 3.0 2.2 1.7 40,000 - 49,999 2.1 2.4 2.7 2.4 2.1 1.9 1.7 50,000 - 59,999 2.9 2.8 2.4 1.9 1.7 1.8 1.7 60,000 - 69,999 3.3 2.7 2.4 2.0 1.8 1.9 1.8 70,000 - 79,999 4.8 4.4 3.3 3.1 2.2 2.1 2.4 80,000 - 89,999 5.4 5.4 4.2 4.2 3.2 2.7 2.5 90,000 - 99,999 6.6 5.7 5.2 4.9 3.8 2.9 3.0 100,000 - 119,999 11.5 11.9 11.7 12.0 9.7 9.3 8.1 120,000 - 139,999 12.9 12.1 12.3 12.7 11.7 12.2 11.3 140,000 - 159,999 9.6 9.8 10.2 10.2 10.0 10.5 10.3 160,000 - 179,999 7.2 6.9 7.5 7.4 8.6 8.2 8.0 180,000 - 199,999 5.4 4.6 5.8 5.3 6.3 6.3 6.4 200,000 - 249,999 8.1 9.1 9.1 8.4 9.8 10.5 11.1 250,000 - 299,999 6.1 6.2 6.7 6.5 6.9 7.2 7.2 300,000 - 399,999 6.5 7.3 6.7 7.2 7.9 9.2 9.6 400,000 - 499,999 2.2 2.9 2.9 3.0 3.8 4.2 4.8 500,000 and more 2.4 2.8 2.7 3.7 5.6 5.8 7.4
Source: Real Estate Center at Texas A&M University
___________________________________________________________________ 27
HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
Price Distribution of MLS Homes Sold, Brazoria Area (in percent) Price Range $29,999 or less 30,000 - 39,999 40,000 - 49,999 50,000 - 59,999 60,000 - 69,999 70,000 - 79,999 80,000 - 89,999 90,000 - 99,999 100,000 - 119,999 120,000 - 139,999 140,000 - 159,999 160,000 - 179,999 180,000 - 199,999 200,000 - 249,999 250,000 - 299,999 300,000 - 399,999 400,000 - 499,999 500,000 and more 2001 4.1 3.7 6.0 8.4 9.6 10.4 11.1 6.9 8.3 10.2 6.7 4.5 1.9 3.9 2.7 0.9 0.4 0.2 2002 3.1 4.0 4.4 6.9 9.0 9.6 10.5 7.9 10.7 10.4 7.0 4.1 3.5 4.2 2.0 2.3 0.4 0.1 2003 2004 2.6 2.8 4.0 5.7 7.6 9.8 9.9 8.4 11.3 13.5 6.4 4.2 3.5 3.4 3.9 2.6 0.2 0.2 2005 3.0 2.5 2.8 5.1 6.8 8.0 8.3 8.3 11.6 11.5 9.6 5.9 4.5 5.5 3.3 2.9 0.2 0.1 2006 2.7 2.8 2.7 4.6 4.8 7.7 7.4 8.0 13.3 10.3 8.5 7.6 4.7 6.3 4.5 3.5 0.4 0.3 2007 1.8 2.3 3.0 3.0 5.0 5.3 7.9 7.7 13.2 11.6 9.2 8.5 5.7 7.0 4.3 3.1 1.0 0.6
"-" represents unreported data or nonparticipation in Real Estate Center's survey. Source: Real Estate Center at Texas A&M University
Price Distribution of MLS Homes Sold, Galveston Area (in percent) Price Range $29,999 or less 30,000 - 39,999 40,000 - 49,999 50,000 - 59,999 60,000 - 69,999 70,000 - 79,999 80,000 - 89,999 90,000 - 99,999 100,000 - 119,999 120,000 - 139,999 140,000 - 159,999 160,000 - 179,999 180,000 - 199,999 200,000 - 249,999 250,000 - 299,999 300,000 - 399,999 400,000 - 499,999 500,000 and more 2001 2002 2003 4.6 3.3 3.0 6.5 6.2 5.9 6.4 5.9 6.8 8.5 7.9 6.5 5.7 6.2 5.8 5.7 3.1 2.1 2004 1.8 4.2 3.0 4.4 5.4 5.6 6.2 5.4 6.5 8.5 7.1 6.0 5.2 9.9 6.8 7.7 2.7 3.5 2005 0.4 1.4 2.3 2.8 4.7 5.5 5.2 4.6 7.2 7.9 7.0 9.6 5.1 10.0 7.5 9.1 4.3 5.6 2006 0.8 0.6 1.5 1.7 2.3 3.6 4.5 3.9 8.6 9.2 7.5 8.9 5.8 10.7 6.2 12.1 5.3 6.8 2007 1.1 0.8 1.2 1.9 3.4 3.5 4.1 3.6 6.7 10.3 7.5 8.2 4.6 10.1 10.2 9.9 5.3 7.7
"-" represents unreported data or nonparticipation in Real Estate Center's survey. Source: Real Estate Center at Texas A&M University
___________________________________________________________________ 28
HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
Price Distribution of MLS Homes Sold Houston Area
16.0 14.0 12.0 10.0
Percent
8.0 6.0 4.0 2.0 0.0
2005 Source: Real Estate Center at Texas A&M University
2006
2007
Price Distribution of MLS Homes Sold Houston MLS
16.0 14.0 12.0 10.0
Percent
8.0 6.0 4.0 2.0 0.0
Houston Area
Fort Bend County Area
Montgomery County Area
Galveston County Area
Source: Real Estate Center at Texas A&M University
___________________________________________________________________ 29
HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
Property Tax Rates, 2007 Tax Rate per $100 Valuation 0.3924 0.6438 1.1567 $2.19 0.5686 0.4940 1.1750 $2.24 0.3114 0.6526 1.4272 $2.39 0.4987 0.3000 1.2500 $2.05 0.5686 0.4356 1.1128 $2.12
Taxing Entity* Houston Harris County City of Houston Houston ISD Total Galveston Galveston County City of Galveston Galveston ISD Total Pearland Brazoria County Pearland City Pearland ISD Total Sugar Land Fort Bend County City of Sugar Land Fort Bend ISD Total Texas City Galveston County City of Texas City Texas City ISD Total
* There are numerous numbers of taxing entities that need to be taken into account for an actual tax rate calculation. See follow ing links for more complete lists: http://w w w .hcad.org/resources/jurlist.asp http://w w w .brazoriacad.org/05_Tax_Rates.htm Source: Brazoria, Harris, Fort Bend, and Galveston Appraisal Districts
___________________________________________________________________ 30
HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
National Home Price Appreciation
The HPI for each geographic area is estimated using repeated observations of housing values for individual single-fam ily residential properties on which at least two m ortgages were originated and subsequently purchased by either Freddie Mac o r Fannie Mae.
30% California 25%
20%
Change from Previous Year
Florida
15%
10% USA 5% Texas 0%
-5%
-10%
4Q-97 2Q-98 4Q-98 2Q-99 4Q-99 2Q-00 4Q-00 2Q-01 4Q-01 2Q-02 4Q-02 2Q-03 4Q-03 2Q-04 4Q-04 2Q-05 4Q-05 2Q-06 4Q-06 2Q-07 4Q-07
California Source: Office of Federal Housing Enterprise Oversight
Florida
Texas
USA
Home Price Appreciation Houston-Sugar Land-Baytown MSA
The HPI for each geographic area is estimated using repeated observations of housing values for individual single-fam ily residential properties on which at least two m ortgages were originated and subsequently purchased by either Freddie Mac or Fannie Mae.
14.0%
12.0%
Change from Previous Year
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
Houston-Sugar Land-Baytown Source: Office of Federal Housing Enterprise Oversight
Texas
USA
___________________________________________________________________ 31
HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
Housing Unit Characteristics Occupied housing units Household Size 1-person household 2-person household 3-person household 4-or-more-person household Race and Hispanic or Latino Origin of Householder One Race White Black or African American American Indian and Alaska Native Asian Native Hawaiian and Other Pacific Islander Some other race Two or more races Age of Householder Under 35 years 35 to 44 years 45 to 54 years 55 to 64 years 65 to 74 years 75 to 84 years 85 years and over Units in Structure 1, detached 1, attached 2 apartments 3 or 4 apartments 5 to 9 apartments 10 or more apartments Mobile home or other type of housing Year Structure Built 2000 or later 1990 to 1999 1980 to 1989 1960 to 1979 1940 to 1959 1939 or earlier Bedrooms No bedroom 1 bedroom 2 or 3 bedrooms 4 or more bedrooms Annual Household Income and Housing Costs* Median household income (dollars) Annual Median Housing Costs (dollars) Housing Costs as a percentage of household income
* in 2005 inflation-adjusted dollars
2005 Occupied Housing Unit Characteristics Houston - Sugar Land - Baytown MSA OwnerRenterTotal occupied occupied occupied housing housing housing units units units 1,146,283 674,668 1,820,951 18.7% 31.9% 18.0% 31.5% 34.4% 24.7% 16.3% 24.6% 24.5% 29.2% 17.4% 28.9%
Owneroccupied housing units 5,162,604 19.1% 34.2% 17.2% 29.5%
Texas Renteroccupied housing units 2,815,491 35.0% 25.8% 16.0% 23.2%
Total occupied housing units 7,978,095 24.7% 31.2% 16.8% 27.3%
73.1% 12.3% 0.5% 5.8% 0.0% 7.3% 0.9% 14.1% 23.2% 26.4% 19.0% 10.3% 5.9% 1.3% 87.7% 3.8% 0.2% 0.4% 0.7% 1.4% 5.9% 16.4% 18.3% 18.1% 31.3% 12.9% 3.1% 0.2% 1.8% 63.6% 34.3% $63,452 $13,152 20.7%
60.3% 25.1% 0.3% 3.9% 0.1% 9.1% 1.2% 44.4% 22.7% 16.6% 9.1% 3.7% 2.8% 0.8% 21.9% 2.3% 2.5% 6.5% 12.7% 49.5% 4.5% 11.6% 13.0% 20.5% 41.5% 9.5% 4.0% 1.3% 37.5% 57.2% 4.0% $27,543 $8,424 30.6%
68.4% 17.0% 0.4% 5.1% 0.1% 8.0% 1.0% 25.3% 23.0% 22.7% 15.3% 7.8% 4.7% 1.1% 63.3% 3.2% 1.1% 2.6% 5.1% 19.2% 5.4% 14.6% 16.3% 19.0% 35.1% 11.6% 3.4% 0.6% 15.1% 61.3% 23.1% $46,705 $10,368 22.2%
79.0% 8.2% 0.5% 2.9% 0.0% 8.3% 1.0% 14.4% 21.9% 24.1% 18.1% 11.9% 7.6% 2.0% 87.5% 2.3% 0.3% 0.4% 0.3% 0.7% 8.5% 13.7% 18.6% 18.7% 28.7% 15.4% 4.9% 0.2% 2.1% 70.8% 26.8% $54,610 $10,536 19.3%
66.2% 17.9% 0.6% 3.1% 0.1% 10.8% 1.4% 46.3% 21.4% 15.4% 8.3% 4.2% 3.1% 1.3% 28.3% 3.6% 4.9% 8.8% 13.8% 35.1% 5.6% 10.9% 14.8% 22.5% 35.0% 12.4% 4.5% 1.5% 32.6% 61.7% 4.2% $26,782 $8,052 30.1%
74.5% 11.6% 0.6% 3.0% 0.0% 9.2% 1.2% 25.6% 21.7% 21.0% 14.7% 9.2% 6.1% 1.8% 66.6% 2.8% 1.9% 3.3% 5.1% 12.9% 7.5% 12.7% 17.2% 20.1% 30.9% 14.3% 4.8% 0.6% 12.9% 67.6% 18.9% $42,139 $9,108 21.6%
Source: U.S. Census Bureau 2005 and Real Estate Center at Texas A&M University
___________________________________________________________________ 32
HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
Houston Yearly Home Sales and Months Inventory
90,000 7
80,000
6
70,000 5 60,000
Months Inventory
50,000
Sales
4
40,000
3
30,000 2 20,000
Months of Inventory measures the current absorption rate and how long it would take for current supply to be depleted if no other listings came on the market.
10,000
1
0 1998 1999 2000 2001 2002
Sales Source: Real Estate Center at Texas A&M University
0 2003 2004 2005 2006 2007
Months Inventory
Yearly Homes Sales
12,000
10,000
8,000
Sales
6,000
4,000
2,000
0 1998 1999 2000
Bay Area
2001
Brazoria Co.
2002
Fort Bend
2003
2004
2005
Montgomery Co.
2006
2007
Galveston
Source: Real Estate Center at Texas A&M University
___________________________________________________________________ 33
HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
Average Sales Price
$250,000
$200,000
$150,000
$100,000
$50,000
$0 1998 1999 Houston 2000 2001 2002 2003 Galveston 2004 2005 2006 2007 Bay Area Fort Bend Montgomery Co Brazoria Co.
Source: Real Estate Center at Texas A&M University
Single-Family Homes Sales Volume Houston, 2007
9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Source: Real Estate Center at Texas A&M University
Units
___________________________________________________________________ 34
HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
Single-Family Homes Sales Volume Bay Area, Fort Bend, Galveston, 2007
1,400
1,200
1,000
800
Units
600
400
200
0 Jan Feb Mar Apr May
Bay Area Source: Real Estate Center at Texas A&M University
Jun
Jul
Aug
Galveston
Sep
Oct
Nov
Dec
Fort Bend
Single-Family Building Permits and Average Value Houston
60,000
1999 MSA definition
$200,000 $180,000
50,000
$160,000 $140,000
Average Value
40,000
$120,000
Units
30,000
$100,000 $80,000
20,000
$60,000 $40,000 $20,000
10,000
0 1998 1999 2000 2001 2002
Units
2003
2004
2005
2006
2007
p
$0
Average Value
2007 figure is a preliminary number.
Source: U.S. Bureau of Census and Real Estate Center at Texas A&M University
___________________________________________________________________ 35
HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
Single-Family Building Permits and Average Value Galveston-Texas City
3,500
1999 MSA definition
$200,000 $180,000
3,000 $160,000 2,500 $140,000
Average Value
2,000
Units
$120,000 $100,000
1,500
$80,000 $60,000 $40,000
1,000
500 $20,000 0 1998 1999 2000 2001 2002
Units
2003
2004
Average Value
2005
2006
2007
p
$0
2007 figure is a preliminary number.
Source: U.S. Bureau of Census and Real Estate Center at Texas A&M University
Residential Homes Sales Inventory
9
8
7
6
Months Inventory
5
4
3
2
1
Months of Inventory measures the current absorption rate and how long it would take for current supply to be depleted if no other listings came on the market.
0 1998 1999 2000 2001
Bay Area Source: Real Estate Center at Texas A&M University
2002
2003
2004
Montgomery Co.
2005
2006
2007
Fort Bend
___________________________________________________________________ 36
http://www.chron.com/realestate/
http://www.chron.com/realestate/
http://www.chron.com/realestate/
How the area fared
UPS AND DOWNS
One-year change in median price per square foot in 2007:
7% or more 4% to 6.9% 2% to 3.9% 0% to 1.9% -3% to -0.1% Less than -3% Insufficient data
Prices held steady for the Houston area’s overall housing market in 2007, although the sales pace slowed as loans were harder to obtain. An annual study showed that 66,828 homes changed hands last year, with a median price of $154,000.* The median price per square foot reached $74.16, a 1.5 percent gain over 2006.
BY SCHOOL DISTRICT
Home price trends for local school districts:
Avg. annual increase 2002-2007 City 2007 median price per square foot One-year change
http://www.chron.com/realestate/
356
318
378
303 316 MONTGOMERY COUNTY 354 355 362 375 447
290
304 301 384 382 381 389 380 388 68 14 66 64 40 86 90 67 38 385 386
45
105
306 302 372 LIBERTY COUNTY 336 339
1960
357
59
365 379 373 73 60 39 338 396 345 346
429 433 65 95
70
69
90
32
WALLER COUNTY
HARRIS COUNTY 493 449 450 494
532 50
10
441
99
90A
471 FORT BEND COUNTY
59
44 37 88 8 16 41 76 93 91 78 8 49 84 28 92 18 22 562 80 610 43 521 55 26 08 530 09 13 15 79 07 20 24 02 77 19 03 11 29 94 42 63 57 56 547 98 06 506 82 12 05 30 04 23 81 225 36 72 401 25 83 503 21 74 17 502 87 536 54 96 571 99 35 51 33 587 31 61 504 505 71 478 45 507 85 477 47 48 75 34 59 489 53 89 586 581 62 479 58 545 584 565 598 459 518 578 546 469 573 6 539 146 GALVESTON COUNTY
45
10
Aldine $58.62 -5.7% Alief $62.74 -3.1% Alvin $81.15 1.9% Channelview $64.14 1.8% Clear Creek $79.34 3.1% Conroe $85.48 4.8% Crosby $68.12 2.3% Cy-Fair $69.66 0.4% Deer Park $73.73 0.0% Dickinson $71.84 -0.4% Fort Bend $75.61 2.5% Friendswood $88.26 5.7% Galena Park $63.14 -2.1% Goose Creek $63.46 -0.2% Houston $108.35 4.6% Huffman $78.89 7.8% Humble $71.05 2.0% Katy $73.34 4.0% Klein $66.94 -0.6% La Marque $67.10 4.2% La Porte $72.80 2.7% Lamar Consolidated $75.89 1.2% Magnolia $86.48 2.5% Montgomery $88.19 3.9% New Caney $72.27 3.2% North Forest $45.32 -13.1% Pasadena $68.23 -1.2% Pearland $76.63 1.0% Santa Fe $84.41 1.6% Sheldon $59.87 -3.3% Spring Branch $132.02 7.3% Spring $59.62 -3.7% Stafford Municipal $73.42 5.4% Tomball $75.94 3.3% Willis $76.63 1.1%
0.4% 2.1% 5.9% 2.3% 2.8% 4.1% 3.1% 1.7% 2.9% 4.1% 2.7% 4.6% 2.1% 3.2% 4.4% 6.4% 2.9% 3.3% 2.2% 3.3% 3.4% 3.0% 3.0% 4.1% 4.8% 1.5% 2.9% 1.7% 4.6% 3.6% 5.2% 1.1% 2.6% 2.4% 3.3%
CHAMBERS COUNTY
Galveston Bay
Bolivar Peninsula
650/623 590
461
583
591 568
288
511 BRAZORIA COUNTY
517
510
553 550 554 551
Galveston Island
How to read the ZIP codes
■ Two-digit numbers: ZIP codes begin with “770”
430
577 534
563
(15 is ZIP code 77015)
■ Three-digit
numbers: ZIP codes begin with “77”
515 486
35
(546 is ZIP code 77546)
*The National Association of Realtors pegs the median at $152,500, based on the Houston, Baytown, Sugar Land MSA. This survey includes sales of mostly existing homes in Brazoria, Fort Bend, Galveston, Harris and Montgomery counties.
WHERE THE SALES ARE
566 531 541
Percentage of all sales, by county:
480 422
Gulf of Mexico
6.4% Galveston 13.4% Fort Bend 5.0% Brazoria
63.8% Harris
11.4% Montgomery
PRICE TRENDS
$90 80 70 60 50 40 30
Median price per square foot, by county, 1997-2007:
Brazoria
$77.57
PRICE INCREASES
Galveston
$78.42 $80.17
Fort Bend
Harris
$71.02
Montgomery
$83.88
Change in the median price per square foot, by county:
One-year change
Avg. annual increase, 2001-2006
$55.89 $45.76 $50.05
’97 ’99 ’01 ’03 ’05 ’07
$49.91
’97 ’99 ’01 ’03 ’05 ’07
$50.55
’97 ’99 ’01 ’03 ’05 ’07 ’97 ’99 ’01 ’03 ’05 ’07 ’97 ’99 ’01 ’03 ’05 ’07
Brazoria Fort Bend Galveston Harris Montgomery
1.2% 3.3% 3.5% 0.4% 3.7%
2.4% 3.2% 4.1% 2.3% 3.8%
FIVE-YEAR PRICE TRENDS
Average change in median price per square foot, 2002-2007:
HOME PRICES
Median price per square foot in 2007:
105 105
45
59
45
59
290
1960
90
290
1960
90
8
8
10 8 99 610 225
10 8 99 610 225
90A 59 45 146
Galveston Bay
6 288 35
90A 59 45 146
Galveston Bay
6 288 35
8% or more 7% to 7.9% 6% to 6.9% 5% to 5.9% 3% to 4.9% Less than 3% Insufficient data
Gulf of Mexico
$100.01 or more $80.01 to $100 $70.01 to $80 $60.01 to $70 $50.01 to $60 $50 or less Insufficient data
Gulf of Mexico
Source: Crawford Realty Advisors prepared this analysis based on sales handled by the Houston Association of Realtors Multiple Listing Service. The study was done in conjunction with the University of Houston’s Institute for Regional Forecasting. The figures primarily reflect existing homes, although 18 percent of last year’s sales were new houses. JAY CARR, CHASE DAVIS : C H R O N I C L E
HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
Houston-Sugar Land-Baytown Market Overview 2008
Retail
Houston Retail Market Absorption
1,500,000
1,000,000
Square Feet
500,000
0
-500,000
-1,000,000 1Q 2004 1Q 2005
Strip Neighborhood
1Q 2006
Community
1Q 2007
Regional
1Q 2008
Source: O’Connor & Associates ‐ April‐08
Houston Retail Market Occupancy Rate
90% 88% 86% 84% 82% 80% 78% 76% 74% 72% 70% 4Q 2003 4Q 2004
Strip Neighborhood
4Q 2005
Community
4Q 2006
Regional
4Q 2007
Source: O’Connor & Associates ‐ April‐08
___________________________________________________________________ 41
HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
Houston Retail Market Rental Rates
$3.50
$3.00
$2.50
Per Square Foot
$2.00
$1.50
$1.00
$0.50
$0.00 4Q 2003 4Q 2004
Strip Source: O’Connor & Associates - April-08 Neighborhood
4Q 2005
Community
4Q 2006
Regional
4Q 2007
___________________________________________________________________ 42
HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
Houston-Sugar Land-Baytown Market Overview 2008
Hotel
Hotel* Occupancy and Rates 2006 Houston-Sugar LandBaytown 70.1 $84.33 63.5 2007 Houston-Sugar Land Texas Baytown 339.9 71.4 $80.74 $90.29 61.3 64.5
# Rooms 000's Average daily rate Occupancy rate (in percent)
*Only properties exceeding $18,000 in the current quarter are included; those units below $18,000 only result in 1.5% of the total state revenues, and have been excluded from this database.
Texas 349.7 $85.28 61.4
Source: Office of the Governor Econom ic Developm ent and Tourism and Source Strategies, Inc. of San Antonio
Trends in the Hotel Industry For the 12 Months Ended December 2007
$140 $123.68 $120 $109.65 $102.73 $100 67.4% 60.8% $80 $80.11 $73.87 $62.47 $60 $67.21 $54.68 $55.70 $42.06 $40 20% $20 $84.32 $70.28 $59.70 $46.19 $71.60 64.8% 66.1% 59.8% 60% 81.4% 77.4% 80% $105.87 67.6%70% 90%
50%
40%
30%
10%
$0 Houston Area Montgomery Co. Galveston Brazosport Beaumont Bryan/ College Station Occupancy Victoria Texas
0%
Average Daily Rate Source: PKF Consulting
RevPAR
___________________________________________________________________ 43
HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
Houston Hotel Data (For the 12 Months Ended December) Occupancy Average Daily Rate RevPAR 2007 2006 2007 2006 2007 2006 Submarket CBD Houston 64.7% 66.4% $158.50 $149.00 $102.51 $98.90 Galleria / Post Oak 70.9 70.7 145.40 138.42 103.12 97.93 Texas Medical Center 73.7 72.8 115.35 110.41 85.06 80.39 Intercontinental 74.2 72.4 81.01 72.92 60.13 52.78 Hobby Airport 61.9 64.8 80.45 79.07 49.80 51.24 Clear Lake 69.5 68.0 86.79 86.05 60.30 58.51 Southwest Houston 63.0 64.3 110.04 104.38 69.37 67.15 Stafford / Sugar Land 73.4 71.1 70.12 62.59 51.44 44.51 Westchase 70.6 70.1 102.84 96.27 72.64 67.47 Katy Freeway 64.4 67.2 91.32 86.88 58.77 58.36 Northwest 68.1 64.9 85.50 77.82 58.27 50.50 Reliant Park / South Main 63.6 70.7 84.81 78.87 53.94 55.79 East / Baytown 61.7 64.3 63.07 57.93 38.93 37.23
Source: PKF Consulting
Trends in the Hotel Industry (For the 12 Months Ended December) Occupancy Average Daily Rate RevPAR 2007 2006 2007 2006 2007 2006 Market Houston Area 67.4% 67.6% $109.65 $102.35 $73.87 $69.15 Montgomery Co. 60.8% 61.8% $102.73 $91.43 $62.47 $56.50 Galveston 64.8% 64.7% $123.68 $119.11 $80.11 $77.02 Brazosport 81.4% 72.2% $67.21 $68.53 $54.68 $49.46 Beaumont 66.1% 72.7% $84.32 $82.27 $55.70 $59.81 Bryan / College Station 59.8% 51.3% $70.28 $67.55 $42.06 $34.69 Victoria 77.4% 75.7% $59.70 $58.20 $59.70 $58.20 Texas 67.6% 68.9% $105.87 $99.61 $71.60 $68.63
Source: PKF Consulting
___________________________________________________________________ 44
HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
Houston-Sugar Land-Baytown Market Overview 2008
Office
Summary of Office Market Indicators - All Space - Year-End 2007 Total SF Avail. SF Under Net Direct Total Rentable SF Immediately Vacancy Rate Constr. or Absorption All Bldgs2 Submarket Bldgs All Bldgs1 (in percent) Renovation (SF) Downtown 214 51,319,593 4,912,666 9.6 290,834 550,000 FM 1960 164 10,176,212 2,620,635 25.8 951,719 133,000 Greenspoint / North Belt 103 12,106,505 1,285,274 10.6 46,800 166,000 Greenway Plaza 98 12,034,231 1,010,875 8.4 108,000 277,000 Gulf Freeway / Pasadena 72 3,069,767 389,860 12.7 93,891 130,000 Katy Fwy / Energy Corridor 218 22,283,162 1,416,667 6.4 1,860,759 718,000 Kingwood / Humble 39 1,956,172 193,661 9.9 44,000 NASA / Clear Lake 107 7,281,992 699,071 9.6 132,135 181,000 Northeast 27 1,488,217 263,414 17.7 (6,000) Northwest 159 12,337,027 1,878,244 15.2 1,211,734 444,000 South Main / Medical Center 80 8,935,786 813,157 9.1 144,000 Southwest Fwy / Sugar Land 238 19,793,541 2,414,207 12.2 685,009 719,000 West Loop 240 35,891,417 3,216,954 9.0 24,000 698,000 Westchase 123 15,770,067 1,134,147 7.2 527,839 312,000 Woodlands / Conroe 117 7,755,778 364,827 4.7 598,606 244,000 Total - Houston 1,999 222,199,467 22,613,659 10.2 6,531,326 4,754,000
1
Includes buildings 15,000 SF Rentable (RBA) and greater. Does not include buildings under construction or buildings ow ned by the government. Does not include sublet space. Source: Delta Associates
2
___________________________________________________________________ 45
HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
Summary of Office Market Indicators - Class Space A1 - Year-End 2007 SF Avail. Vacancy SF Under Total Net Rentable SF Immediately Rate 2 (in Constr. or Absorption Total All Bldgs2 percent) Renovation3 (SF) Submarket Bldgs All Bldgs1 Downtown 33 30,683,151 1,490,415 4.9 243,372 557,000 FM 1960 14 2,951,731 1,340,053 45.4 585,153 196,000 Greenspoint / North Belt 17 4,388,082 190,000 4.3 30,000 Greenway Plaza 16 6,065,963 564,135 9.3 195,000 Gulf Freeway / Pasadena Katy Fwy / Energy Corridor 56 10,594,900 455,581 4.3 1,758,570 423,000 Kingwood / Humble NASA / Clear Lake 9 1,282,130 66,671 5.2 (10,000) Northeast Northwest 14 2,556,531 400,655 15.7 668,188 282,000 South Main / Medical Center 10 2,732,826 385,328 14.1 277,000 Southwest Fwy / Sugar Land 17 4,447,647 387,486 8.7 408,195 170,000 West Loop 46 18,883,164 1,291,406 6.8 345,000 Westchase 23 7,201,603 336,079 4.7 318,557 217,000 Woodlands / Conroe 13 2,519,502 57,949 2.3 373,028 (23,000) Total - Houston 268 94,307,230 6,965,758 7.4 4,355,063 2,659,000
1
Class A per CoStar and greater than 50,000 SF. Does not include buildings under construction or buildings ow ned by the government. Does not include sublet space. Includes only buildings of 50,000 SF or greater.
2 3
Source: Delta Associates
Summary of Office Market Indicators - Class Space B1 - Year-End 2007 Rentable SF Avail. SF Under Net SF All Immediately Vacancy Constr. or Absorption Total (SF) Submarket Bldgs Bldgs1 All Bldgs2 Rate 2 Renovation3 Downtown 77 14,623,859 1,863,691 12.7 47,462 263,000 FM 1960 92 5,279,554 1,057,885 20.0 366,566 210,000 Greenspoint / North Belt 55 5,962,206 794,813 13.3 46,800 141,000 Greenway Plaza 35 4,143,389 269,320 6.5 108,000 29,000 Gulf Freeway / Pasadena 25 1,645,649 304,445 18.5 93,891 89,000 Katy Fwy / Energy Corridor 94 9,049,743 682,528 7.5 102,189 382,000 Kingwood / Humble 26 1,574,700 182,665 11.6 39,000 NASA / Clear Lake 49 4,126,191 358,979 8.7 132,135 84,000 Northeast 13 992,494 231,251 23.3 37,000 Northwest 67 6,404,060 1,064,346 16.6 543,546 146,000 South Main / Medical Center 26 2,945,304 291,585 9.9 (172,000) Southwest Fwy / Sugar Land 113 10,893,186 1,441,511 13.2 276,814 421,000 West Loop 121 13,521,217 1,583,111 11.7 24,000 514,000 Westchase 58 6,026,064 531,084 8.8 209,282 87,000 Woodlands / Conroe 72 3,841,095 222,115 5.8 225,578 261,000 Total - Houston 923 91,028,711 10,879,329 12.0 2,176,263 2,531,000
1
Class B per CoStar and greater than 50,000 SF. Does not include buildings under construction or buildings ow ned by the government. Does not include sublet space. Includes only buildings of 50,000 SF or greater.
2 3
Source: Delta Associates
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HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
Rent Rate Analysis of Class A & B Office Buildings - Year-End 2007 Annualized % Change Average Asking Rent ($'s/SF, GSF) (in percent) at end of: 2006 2007 2006-2007 Class A Class B Class A Class B Class A Class B $23.20 $19.33 $28.91 $22.59 24.6 16.8 $21.36 $15.85 $24.27 $17.05 13.6 7.6 $19.82 $15.86 $21.07 $16.69 6.3 5.2 $20.72 $17.81 $22.95 $19.77 10.8 11.0 $15.98 $17.02 6.5 $23.12 $17.01 $26.00 $19.06 12.4 12.0 $17.20 $17.37 1.0 $20.12 $16.66 $22.21 $19.31 10.4 15.9 $13.77 $13.80 0.2 $18.97 $15.40 $21.28 $16.62 12.1 7.9 $24.34 $22.15 $26.73 $22.15 9.8 0.0 $20.12 $15.01 $21.33 $15.51 6.0 3.4 $21.08 $16.97 $26.46 $17.99 25.5 6.0 $22.12 $17.36 $24.25 $18.63 9.6 7.3 $23.82 $19.73 $24.41 $21.97 2.5 11.3 $21.71 $16.85 $25.48 $18.37 17.4 9.0
Submarket Downtown FM 1960 Greenspoint / North Belt Greenway Plaza Gulf Freeway / Pasadena Katy Fwy / Energy Corridor Kingwood / Humble NASA / Clear Lake Northeast Northwest South Main / Medical Center Southwest Fwy / Sugar Land West Loop Westchase Woodlands / Conroe Total - Houston
Source: Delta Associates
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HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
Houston Office Market Year-End 2007
60 30%
50
25%
40
Million SF
20%
30
15%
20
10%
10
5%
0
0%
Total Rentable SF Source: Delta Associates
Vacancy Rate
Houston Office Market Net Absorption, Year-End 2007
3,000,000 2,750,000 2,500,000 2,250,000 2,000,000
Square Feet
1,750,000 1,500,000 1,250,000 1,000,000 750,000 500,000 250,000 0
Source: Delta Associates
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HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
Houston Office Market Under Construction, Year-End 2007
2,000,000 1,800,000 1,600,000 1,400,000
Square Feet
1,200,000 1,000,000 800,000 600,000 400,000 200,000 0
Source: Delta Associates
Rent Rate Analysis for Class A & B Office Buildings Houston Area
$30
$25.48 $25 $21.71 $20.47 $20 $16.06 $15 $16.10 $16.40 $16.85 $20.25 $20.30 $18.37
Per SF
$10
$5
$0 2003 2004 2005
Class A Source: Delta Associates Class B
2006
2007
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HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
Houston-Sugar Land-Baytown Market Overview 2008
Industrial
Summary of Industrial Market Indicators - All Space - Year-End 2007 Total SF Avail. Direct Vacancy Rate SF Under Net Rentable SF Immediately Vacancy Rate w/Sublet Constr. or Absorption Submarket All Bldgs.1 All Bldgs.2 (in percent) (in percent) Renovation (SF) Central Business District 34,858,607 1,155,768 3.3 3.4 133,310 6,000 East-Southeast Far 29,389,258 3,603,046 12.3 12.3 1,072,029 3,444,000 North Far 39,790,166 2,834,246 7.1 7.1 2,193,401 3,255,000 North Near 17,045,651 703,553 4.1 4.4 433,882 887,000 Northeast Far 969,994 4,989 0.5 0.5 4,000 Northeast Near 29,984,699 858,927 2.9 2.9 71,000 830,000 Northwest Far 37,456,134 2,570,202 6.9 6.4 930,248 356,000 Northwest Near 98,092,330 4,169,998 4.3 4.4 286,276 1,796,000 South Far 25,345,204 1,226,693 4.8 4.8 6,000 South Near 15,124,194 531,438 3.5 3.5 401,000 Southeast Near 32,437,670 795,149 2.5 2.5 86,000 Southwest Far 8,845,155 589,569 6.7 6.7 117,774 173,000 Southwest Near 43,842,649 2,074,331 4.7 4.7 319,786 725,000 Sugar Land 15,916,494 835,360 5.2 5.6 52,500 502,000 Total Houston 429,098,205 21,953,269 5.1 5.1 5,610,206 12,471,000
1 2
Does not include buildings under construction or buildings ow ned by the government. Does not include sublet space.
Source: Delta Associates
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HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
Houston Industrial Market Year-End 2007
120,000,000 14.0 12.0 10.0 8.0 60,000,000 6.0 40,000,000 4.0 2.0 0.0
100,000,000
80,000,000
Square Feet
Percent
20,000,000
0
Total Rentable SF Source: Delta Associates
Vacancy Rate
Houston Industrial Market Net Absorption, Year-End 2007
4,000,000 3,500,000 3,000,000
Square Feet
2,500,000 2,000,000 1,500,000 1,000,000 500,000 0
Source: Delta Associates
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HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
Houston-Sugar Land-Baytown Market Overview 2008
Development Land
Year-end 2007
Development Land Office In CBD (per buildable acre) Land in Office Parks Land in Industrial Parks Office/Industrial Land - Non-Park Retail/Commercial Land Residential
Source: NAI Houston
Low (price/acre) $185,130 $5,499 $5,000 $6,875 $2,501 $21,780
High (price/acre) $217,800 $239,578 $176,000 $6,098,400 $6,098,400 $1,219,680
For more information about Texas, click on: Texas' Official Home Page
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HOUSTON-SUGAR LAND-BAYTOWN, TEXAS
~REAL ESTATE CENTER MARKET OVERVIEW 2008
This annual report is created free of charge by the Real Estate Center at Texas A&M University. We strive to provide the most accurate, up-to-date, and insightful data to paint a detailed picture of Texas’ Metropolitan Statistical Areas. However, links contained in this report may change in time and become obsolete. The Real Estate Center advises to contact the original source if any of the links are found to be broken. The Center also provides numerous publications, resources, and data on building permits, employment, population, and home sales at http://recenter.tamu.edu. For the latest daily news visit http://recenter.tamu.edu/mnews/ Report compiled by: Administrative Coordinator Edith Craig Market Research Analyst Beth Thomas, MRE Technical Consultant Blake Lacy, LERE Coordinator Assistant Kory Merten
Real Estate Center, 2115 TAMU, College Station, TX 77843-2115 Phone: 979.845.2031 | Fax: 979.845.0460