The federal government's actions will play a key role in the rate at which two of Houston's big industries recover from the recent economic trouble, according to Metrostudy-Houston, which will in turn directly impact the city's real estate market.
Budget cuts to the National Aeronautics and Space Administration, which maintains extensive facilities in the Houston area, could jeopardize the ongoing role that agency plays in the economic life of the city, Metrostudy-Houston reports. The site's researchers also point out that, as more of NASA's functions are turned over to private enterprise, reasons to remain in the city disappear.
The deep-water drilling industry is also crucial to Houston's economy, according to the researchers, but the government must issue permits for any work to proceed. Fortunately, Metrostudy-Houston says, those permits are set to be handed out within weeks, meaning that drilling can soon proceed.
Shifting demographics and property values among various neighborhoods in the city make predictions difficult, experts say, but the generally positive economic picture should continue to take shape over the course of 2011.