Oil & Natural Gas Jobs Helping Drive Texas Real Estate
published on November 6, 2012
During the recession, home prices fell across the country, but one indicator that continued to thrive, and still does, is the price of gas. While pump prices may drive Texans with a commute crazy, those fluctuating numbers can be beneficial for the entire Texas economy, including the real estate market. Texas has been a major beneficiary of increased oilfield employment, and that has had a positive impact on the state’s real estate markets.
A recent PricewaterhouseCoopers (PWC) report estimates the oil and gas industry supports about two million direct and indirect Texas jobs that power 24% of the state’s economy. A result of this economic impact is that Texas residential and commercial real estate markets are largely outperforming those in the rest of the country, including the Austin market, where sales of Austin luxury homes are partially fueled by a thriving oil and gas industry.
Although employment and economic gains reach well beyond the site of an oil well, some of the biggest effects have been in areas at the heart of drilling activity, including the Permian Basin, Eagle Ford, and Barnett shale regions. “Growth and economic success are felt statewide,” said Austin REALTOR Brian Talley. “Oil prices over $100 a barrel throughout 2008 helped extend positive job growth, especially in the Permian Basin region, which has helped keep Texas ahead of the recession curve.”
While oil is a major player in propelling the Texas economy, an affordable supply of natural gas liquid also is driving companies to expand their facilities in Texas, which benefits commercial real estate sales, as well as residential real estate sales, as companies hire more employees to accommodate their growing sizes. PWC reports that inexpensive natural gas could help U.S. manufacturing save more than $11 billion per year and create 500,000 new jobs by 2025. “Texas is well positioned to take advantage of low-priced energy,” Talley said. “This is good news for the state’s real estate markets.”
If the price of natural fuels still makes you want to bring a sleeping bag to your office, a home close to work like those in the Tarrytown neighborhood or a home for sale in Eanes ISD might eliminate pain at the pump.
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