Houston rocks...

[Alex_Saloutos]

It looks like Houston rocks for homebuilders! I subscribe to a newsletter from John Burns, one of preimminent housing analysts in the U.S. In his latest report Houston is the best market by far in the U.S. for single family homebuilders based on permits for the trailing twelve months. Here are the top five markets:

Houston--27,109
Phoenix--11,888
Houston--11,517
Atlanta--11,240
Charlotte--7,167

Comparing the market today to its peak, Houston is holding it own there as well. Looking at what were some of the hottest markets here is where the current permits are for the trailing twelve months, including multi-family, compared to the peak:

Houston 56%
Dallas 34%
Las Vegas 32%
Phoenix 25%
Atlanta 23%
Riverside/San Benardino 15%
Miami 13%
San Diego 11%

Of course, employment is a huge driver of the Houston housing market. Of the 30 largest metro areas Houston has seen the smallest increase in unemployment over the last four years.

-Alex

P.S.: Allan, I apologize in advance if anyone gives you a hard time about this. I know that you've worked your a*# off and your efforts are the primary reason for your success.

[Allan Edwards]

Alex

You must be talking about a Houston I'm not aware of. Of course it is like a small state, I read that metro Houston has 5.6 million people, more than 27 states. I do track sales of new homes over 1.5 million, and since last Sept 15 sales have plummeted. We had Ike in September, then the financial meltdown began in October, then the energy sector contraction started in December. I am starting to see a few houses drop in price. And land prices have subsided, if not decreased 5-10%.

The small, cheap stuff out in the sticks may be selling, I really don't track the cheap stuff nor do I keep up with multi-family.

[davenorthup]

I read in the Economist that Houston, Austin, Dallas, San Antonio and Fort Worth were rated the best for construction employment numbers in the nation by BUILDER magazine.

I do not know the exact parameters of what the "best" is; but that is what it said.

I just left Austin yesterday and that place looks like a mini boom town still.

It does seem Texas is fairing better than other areas; especially in lower foreclosure rates and employment; besting national averages in both.

I guess Texans should expect company? I have seen Seattlites (may have just created a new word?) hit AK in search of work as AK is also fairing better than most; but on a much smaller scale.

[quijas23]

Its amazing what low taxes will do for an economy...
Dont mention that to anyone in california as we still have our head to far up our as### to do anything that makes sense.

I actually am starting a small business and I am seriously considering relocating my business to texas because of the business friendly environment. I just cant do it her in california as we get dinged coming and going: a sales tax, income tax and tons of fees piled on just for the privelege of living 500 miles from hollywood!

Did anyone catch the 60 minutes peice on housten over the weekend? it was interesting to say the least, they just neglected to talk about why businesses move there (the very reasons I stated above).

[Dick Seibert]

Houston and Alaska thrive on oil, this from an Arkansas oil and mineral rights appraiser:

The depression (for lack of a more descriptive term) saw oil prices plunge from July until about Jan. from $140 down to $35 a bbl. or so. Today, it stands at $52 or so, under enormous upside pressure despite the low demand equation.

What has happened to "alternative" fuels? Ethanol plants are being suspended after peaking last summer with dozens under construction. At once, they realized that ethanol from corn drove up corn prices, food prices, and at the same time produced less amounts of ethanol than say sugar based ethanol from Brazil. Without subsidies, ethanol is a loss leader of the worst sort. Bankrupcty looms for many ethanol plants. Farmland prices, as a result, has dropped 7% according to today's paper in the last 6 months.

Windmills, in that same newspaper, are reportedly one of the leading causes of death among migratory birds, yet we pursue a path of placing thousands of windmills in the Western and Plains flyways. It is a slaughterhouse out there. Once the bird gets too near the blades, they are sucked into the airstream and the inevitable happens.

Nuclear isn't going anywhere anytime soon. NIMBYs and anti-nuclear and anti- development activists (at least Greenpeace recognizes the benefits this time) continue trench warfare against using atomic power.
Rig Zone
What's left? Oil and gas. What has happened to that? Rigzone, an ezine industry magazine, reports today that the rig count is in "new territory". Rigs are a measure of drilling activity and the rig count since July has plunged at a record rate never before seen. This idles hundreds of rigs (only 1,100 land rigs are operating for gas and oil and that is off by 700 rigs since July...over one-third the fleet is idled. about 20 people per rig depend upon a job there.)

Rough Neck City

Rig Zone Tax policy will hurt domestic industry which is critical to increasing U. S. production. Now tell me again. We tax the industry. We stop drilling. The solar/wind/ethanol boys cannot survive without huge subsidies and Obama is going to lead us to the promised land of "energy independence"...so did Nixon, Ford, Carter, Reagan, Bush I, II, and Clinto was going to use Natural gas to shut down the coal fired plants.

Wired
Columbus Dispatch

Yes, Virginia, the Texans were right...Us dumb bastids gonna freeze in the dark....

And California says no to Solar Farms in the desert.

Looks like we all better move to oil country.

[davenorthup]

Texas also has the largest wind farm in the US as well. :)

Smartly playing both sides of the deck.

Quijas - Houston has the sales and income tax and can be fairly expensive for the region; but likely not the same "Hollywood tax". :)

You could try Amarillo or El Paso, however?

[Joe Adams]

Quijas - Houston has the sales and income tax and can be fairly expensive for the region; but likely not the same "Hollywood tax".

You could try Amarillo or El Paso, however?

Houston has a 8.25% sales tax (6.25% State, 1% City, 1% Metro). There is no State income tax in Texas. Schools, counties, and municipalities collect property taxes. There is also State franchise tax for corporations.

But seriously Dave, Amarillo or El Paso? Have you ever been to Amarillo or El Paso? I'd rather live in Dallas!!!

[davenorthup]

News to me on the state income tax - I thought you guys had one... My mistake.

But seriously Dave, Amarillo or El Paso? Have you ever been to Amarillo or El Paso? I'd rather live in Dallas!!!

Yeah I have had the pleasure of being in both places a few times - I was joking and tried to pick the 2 worst places in your great state... :)

No undoubtedly less expensive however... :)

[Joe Adams]

Yeah I have had the pleasure of being in both places a few times - I was joking and tried to pick the 2 worst places in your great state... :)

Okay I feel better now but you forgot Slowdeatha (Odessa) and Wacko (Waco).

No undoubtedly less expensive however... :)

That's probably true but the cost of living in Houston is still more reasonable than other major cities. Texas is a big state and there are all kinds of people in all parts of the state. From dazzling urbanites to inbred troglodytes - every town has their share. However, only our capitol has a campaign to "Keep Austin Weird." www.keepaustinweird.com

[davenorthup]

Okay I feel better now but you forgot Slowdeatha (Odessa) and Wacko (Waco).

Never been to Odessa; but have driven through Waco a few times and never managed to get off the HWY (for good reason I suspect)... My wife did spend some time visiting family in Killeen - (close enough)?

Texas is a big state and there are all kinds of people in all parts of the state. From dazzling urbanites to inbred troglodytes - every town has their share. However, only our capitol has a campaign to "Keep Austin Weird." www.keepaustinweird.com

Yeah - just spent 5 days at SXSW in Austin; granted many are temporary transplants like I was; but Austin is quite diverse - that is for certain. Not too many places where you see a guy with a mohawk and cowboy hat together dancing to the same music. :)