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How Will An Overpriced Housing Market and Low Oil Prices Affect Austin?

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creative commons

The price of oil is the lowest it's been since 2009. And housing prices have all but stopped rising in Austin. So, what could those two things mean for the Austin economy in 2015?

Angelos Angelou is one of Austin's most trusted economic forecasters.

He said he doesn't think Austin is facing a housing market bust, even though Austin's is one of the most overpriced housing markets in the nation. 

Angelou advised the crowd who attended his 30th annual economic forecast to become homeowners "as quickly as you can."

He said homeownership is still one of the safest investments. And for those who are hesitant to invest in more than one home, he said "if you can, buy more than one home."

He doesn't see prices going significantly down anytime soon.

As far as the low oil prices the world is experiencing right now, Angelou said they will affect Austin.

"We are going to lose up to 150,000 jobs in the state," he said. But he is not too worried about the economic impact of those losses because the economy seems to be healing itself.

"Lower oil prices have also put more money into people's pockets. In fact, our estimate is up to $14 billion dollars a year. And that money is going to be spent and is going to be creating jobs and opportunity."

If prices stay low long enough, Angelou predicts a shift in the industries that will succeed in Texas. 

Texas Standard reporter Joy Diaz has amassed a lengthy and highly recognized body of work in public media reporting. Prior to joining Texas Standard, Joy was a reporter with Austin NPR station KUT on and off since 2005. There, she covered city news and politics, education, healthcare and immigration.