Is Houston a Ticking Time Bomb? (Oil Crash Explained)

Houston’s story is closely tied to oil and gas, but its economy today is much more diversified than it once was.In this episode of the LSCRE Podcast, Rob Beardsley, Craig McGrouther, and Sam Morris revisit the 1980s, when oil went from about $30 a barrel to about $8 a barrel. When that happened, it dragged down everything with it, with real estate on fire sale, widespread job losses, and banks failing, creating a long period of economic distress.Since then, Houston has become substantially more downside protected. Oil and gas is still a major part of the economy, but it is no longer as predominant as many people think, dropping to a much smaller share over time as other industries expanded.Today, when oil goes up, it boosts profits and activity in Houston, but the city is far more resilient than it was in the past due to its diversified economic base.Learn more about LSCRE at www.lscre.com