• Houston ended 2020 on a high note, seeing positive absorption for the first time in two quarters. 74% of Q4 deliveries were leased by the end of the quarter and were the main contributor to positive absorption.
  • More than half of the jobs Houston lost since April have come back, with November unemployment at 8.9%, showing a much faster pace of recovery than previous downturns. Transportation, warehousing, retail, leisure and hospitality, and government have seen the most increases, while mining is still down 15% from this Spring.
  • The most important stimulus tool is the vaccines that are now being deployed. They will not prevent a difficult winter but should allow for some normalization of activity by mid-Q2 2021.
  • Presently, we anticipate GDP growth nearing 5% in 2021 with upside risk. The outlook will be uneven across sectors with the travel and hospitality industry likely to operate below potential for some time whilst technology and goods-production should see a quicker path to recovery.