Forbes Reports Houston Coming Out of Recession

Forbes magazine (http://www.forbes.com)Houston is 4th on the list of top US cities where the recession seems to be easing. Houston, along with nine other metropolitan areas, are best surviving the downturn in part because they specialize in industries that are relatively insulated from economic volatility, Forbes said.

If one state is a poster child for economic recovery, said Forbes, it’s Texas, which is home to four of the 10 cities on the list. Houston was tied with Minneapolis for fourth place. Meanwhile, Austin was tied for first place with Washington, D.C. while Dallas came in third and San Antonio ranked No. 7.

“There’s more to why Austin, Dallas, San Antonio and Houston are faring well than just the state’s energy industry. The tech, government and education industries supplement the oil state’s riches,” Forbes said. “As for housing, cities in Texas didn’t see the same run-up in home prices and rampant speculation that led to the spectacular bubble burst elsewhere in the country.”

James P. Gaines, research economist at the Real Estate Center at Texas A&M University, said, “We didn’t have excessive overbuilding, so we don’t have a big overhang of unsold new homes, and because Texas has among most affordable housing in the country, the demand sustained.” Like Austin and Dallas, Houston is expected to experience a three-year, 7.03 percent rise in jobs. But nowhere are jobs projected to grow more than in San Antonio, where four military bases should help drive its expected 8.32 percent increase.