Housing markets in Texas remain strong remain strong despite an economic slump in the nation's energy capital, but some worry about the high prices for a few Eagle Ford residents.
Related: Low Oil Prices and the Texas Economy
The decline in oil prices over the last year has caused a slowdown in employment growth and some job cuts, but homes sales remain strong. In May 2015, there were 28,088 sales of existing single-family homes, 1.66% percent more than in May 2014.
Lawrence Yun, the chief economist for the National Association of Realtors, said that home price increases in Texas are running at about twice national rates.
While increased home prices are a great thing for property owners, for many at the bottom of the wage pool, this represents a constant struggle to make ends meet.
“We need to tone down the price growth, because prices are rising too fast,” Yun said. “House prices nationally are now reaching back to 2006 levels,” before the recession.”
Residents in some Eagle Ford counties are among the most vulnerable. UTSA just announced they will be conducting a study of the impact of oil-and-gas exploration on the affordability and adequacy of housing in Dimmit, La Salle and Zavala counties. The study, funded by the U.S. Department of Housing and Urban Development, will also address how federal, county and local policies affect the availability of rental housing, affordable housing and housing options for vulnerable populations.
Texas continues to lead the nation in consumer confidence. The Texas region's consumer confidence index was 130.5 in May 2015, up 7.5 percent from April 2015 and compared to the national index of 95.4.