The recent drop in oil prices has raised concerns about the economies of energy-dependent areas across the country, especially as many market watchers forecast prices to remain low through the end of the year. 

In this Multifamily Research Perspectives report, we find that:

  • As oil prices fall and are expected to remain low, energy-dependent areas are at risk of an economic slowdown and impacts to their multifamily markets.
  • Smaller metropolitan areas will likely experience a more severe economic impact, whereas larger metro areas are more diversified and can better absorb the potential losses. 
  • Houston is the largest metro with risk exposure; while the oil price drop will have an impact on the multifamily sector there, it will not be as severe as during the energy crash of the 1980s.
  • The broader economy is expected to benefit from lower oil prices over the next few years.

Read the report.