(Houston, TX– February 1, 2011) Houston’s economy is showing signs of recovery, albeit small, according to a recent report by Metrostudy, a national housing data and consulting firm that maintains the most extensive primary database on residential construction in the US housing market.

The Houston economy ended the year with over 13,000 jobs more than it began the year, a .5% increase after a loss of 102,800 jobs in 2009. “Job growth is considered essential for strong housing demand on a regional basis and could be the wind at Houston’s back,” said David Jarvis, director of Metrostudy’s Houston division.

Overall, Metrostudy recorded 18,752 home starts in 2010, a 1.1% increase over 2009. This is the first increase in new home activity after 3 straight years of decline. Houston closed 20,579 homes in 2010, a 10% decline from 2009. Closings have outpaced starts since the first quarter of 2007, so the market has absorbed inventory. “As new home demand stabilizes, we expect the gap between starts and closings to narrow going forward,” said Jarvis.

Total new home inventory stands at a 5.9 month supply, below the 6 that Metrostudy considers equilibrium for Houston. Finished vacant inventory has dropped to 5,320 units, a 3.1 month supply.

“The Houston market continues to face fewer market obstacles than most U.S. markets,” said Jarvis. “Texas’s pro-growth policies and business friendly environment will continue to benefit local housing markets and allow for 2011 to show moderate growth.”

For information contact:
david jarvis @ 713.622.9909 x 132
email djarvis@metrostudy.com

About Metrostudy
Metrostudy is the leading provider of primary and secondary market information to the housing industry and related industries nationwide. In addition to providing its own primary housing data for approximately 70% of the United States housing market, the company is recognized for its consulting expertise regarding real estate development, marketing and economic issues, and is a key source of research studies evaluating the marketability of residential and commercial real estate projects. Services are offered through an extensive network of offices located in major metropolitan areas throughout the U.S. For more information, visit www.metrostudy.com.