CITY SYNOPSIS:

HOUSTON

Assignees moving to Houston may find the ever-expanding urban sprawl of the fourth largest U.S. city overwhelming. And with a wide metropolitan area that has a population of more than 2 million people, it can be easy to get caught up in the hustle and bustle – especially when it comes to the city’s infrastructure, which can cause problems for commuters.

Nevertheless, the city of Houston is on the rise, and continues to bring expatriates to Texas for career opportunities in a variety of different industries.

ABOUT HOUSTONFACTS

> Country: United States > Population: 2.2 million > Climate: Humid subtropical > Industries: Oil and gas, renewable energy,

aerospace, medical

> National languages: English (secondary: Spanish)

> Nickname: Space City > Dominant mode of transportation:

Automobile (72-percent)

ECONOMIC TRENDSThe oil and gas industry was responsible for between 11.7-percent and 13.5-percent of the economic activity in Texas in 2013, depending on the analyst.1

The Texas economy has been on the rise for the last several years. Due mainly in part to the unconventional oil boom in 2014, the state’s oil output had reached the highest levels since 1976, which sparked a surge in new home construction, simultaneously increasing housing costs in many metro areas.2

The volume of the oil oversupply and the slow growth in the global economy forced oil companies and international agencies to re-evaluate year-end economic forecasts. Now in 2015, most revisions predict the price of oil is unlikely to reach $85 a barrel for at least 18 months to two years.3 As a result, oil companies have started cutting their capital expenditure plans for 2015.

This will undoubtedly have a negative effect on the Texas and Houston economies. In fact, the world’s three biggest oilfield service firms – Schlumberger, Halliburton, and Baker Hughes – have announced a combined 22,000 layoffs in

recent months. Those job cuts are worldwide, but many are falling in Houston, where all three companies have headquarters.4

INFRASTRUCTURE IMPROVEMENTSHouston’s ever-growing population requires better infrastructure even as state funding remains limited. However, long-term infrastructure improvements are in the works. In November 2015, Texans will vote on whether the state should dedicate $2.5 billion in sales tax revenue to help build and maintain roads. If approved, lawmakers say the plan could mean an additional $3 billion dedicated to transportation funding by 2020.5 If passed, work may begin in 2017, with construction adding to travel delays for up to five years.

In June 2015, the Texas Department of Transportation announced 13 roadway projects were approved for funding to improve the state’s stressed transportation infrastructure. TxDOT has approved 75 of 200 proposed projects, and if all the planned projects are approved, the updates would include more than 800 miles of refurbished highway lanes, nearly 500 miles of new highway lanes, 114 widened bridges,

1 Chris Tomlinson. “Turmoil is coming to Houston area’s economy.” Houston Chronicle, December 23, 2014.

2 Erin Carlyle. “America’s Most Overvalued and Undervalued Housing Markets.” Forbes, June 8, 2015.

3 Chris Tomlinson. “Turmoil is coming to Houston area’s economy.” Houston Chronicle, December 23, 2014.

4 Andrew Schneider. “In Houston, Falling Oil Prices Spark Fears Of Job Cuts Beyond Energy.” NPR, March 2, 2015.

5 “Houston’s Mayor on Race, Roads, and Gay Rights.” Here and Now, June 24, 2015.

Baker’s DozenCustomer Satisfaction Ratings

2015 WinnerRELOCATION

and 159 miles of new passing lanes on rural highways.6 With these improvements will come untold delays due to construction and detours.

Additionally, ReBuild Houston, a city initiative to improve the quality of life and mobility for residents, is gaining traction. To support the initiative, the city has established a dedicated, pay-as-you-go fund to maintain the infrastructure and plan upgrades to meet future needs as the city grows.7

HOUSTON HOUSINGWith the depressed oil prices of 2015 causing the energy industry to lose jobs, the disparity between economic growth and housing costs isn’t likely to get better in Texas cities any time soon. Houston is currently number two on Forbes’ 2015 list of America’s Most Overvalued Housing Markets.8

Housing prices in Texas cities are unlikely to go down in the forseeable future. Houston metro homes are currently overvalued by about 18-percent.9 Meanwhile, Houston’s existing-home market bounced back up in March 2015, registering a 3.6-percent increase in completed sales from a year ago and a 30.6-percent spike in pending sales.10

As for apartments, rent growth across the Houston region has been relatively stagnant in recent months, according to Apartment List. In May, rents grew only 0.2-percent, below the national average. The median price for a two-bedroom is $1,260. Apartment List also notes that Houston received the lowest scores in Texas, lagging behind Austin, San Antonio, and cities in the Dallas metro area. This may be because the U.S. renter population is extremely large, and is concerned with factors such as crime rate and access to recreation. So Houston’s low scores may be hindering its ability to attract this demographic.11

COST OF LIVINGThe energy capital of Texas is home to more than 20 Fortune 500 companies, and apart from oil and gas, sectors like IT, business services, aerospace, medical, and biotechnology attract workers from around the world. Whether moving to Houston with children or relocating on their own, expats can enjoy the relatively low cost of living.12

Cities in the U.S. climbed dramatically in the cost of living ranking due to the strengthening of the U.S. dollar against other major currencies. The findings of the 2015 Mercer Cost of Living Survey placed Houston up 51 places since 2014, but it is still listed among the less expensive cities in the U.S. surveyed for expatriates.13

The cost of living in Houston is currently 10-percent lower than the national average. Cost of living is greatly impacted by the price of housing. Despite being overvalued, housing costs in Houston are at 22-percent less than the national average.

Houston has a lot to offer in the form of entertainment. Downtown Houston has many options for casual and fine dining, a theater district with nine major performing arts centers and six performance halls, and major league sports teams. It is also home to the NASA Lyndon B. Johnson Space Center and the Texas Medical Center, the largest medical center in the world. More than 52,000 Houston residents work in the Texas Medical Center, making it a large part of the city’s economy.14

See Figure 1 for a list of everyday items and prices in Houston, Texas. See Figure 2 for a comparison of Houston’s cost of living compared to Singapore.

6 “Transportation Commission Approves June Proposition 1 Projects.” Texas Department of Transportation, June 25, 2015.7 www.rebuildhouston.org8 Erin Carlyle. “America’s Most Overvalued and Undervalued Housing Markets.” Forbes, June 8, 2015.9 Ibid.10 Kris Hudson. “Houston Housing Market Holds Up.” The Wall Street Journal, May 2015.11 Erin Mulvaney. “It’s not necessarily cheap to rent in Houston’s suburbs.” Houston Chronicle, June 15, 2015.

12 Expat Arrivals. 13 “Economic and Political Unrest Challenge Multinationals’ Planning for International Assignments

to Compete Globally.” Mercer, June 2015.14 www.payscale.com.15 www.numbeo.com.16 Ibid.

FIGURE 1: PRICE OF COMMON ITEMS IN HOUSTON, TEXAS15*

USD EUR GBP SGD

Loaf of bread $2.21 1.97 € £1.40 $2.97

Bottle of wine $11.50 10.27 € £7.31 $15.44

One-way bus ticket $1.25 1.12 € £0.79 $1.68

Pair of sport shoes $77.42 69.16 € £49.20 $103.97

One-bedroom city apartment (monthly rent)

$1,178 1,052 € £748.59 $1,582

Imported beer at a restaurant

$5.00 4.46 € £3.18 $6.72

* Note: current currency conversions reported on June 25, 2015.

FIGURE 2: COST OF LIVING IN HOUSTON COMPARED TO SINGAPORE16

Consumer price index -6.75%

Rent index -25.69%

Groceries index +11.69%

Restaurants index +30.12%

Consumer price plus rent index -25.69%

Local purchasing power +47.58%

APPS TO HELP YOU NAVIGATE YOUR NEW CITY

Yelp! – Offers over 50 million reviews for businesses worldwide. Easily search nearby restaurants, read reviews, and view local deals.

OpenTable – Read restaurant reviews from real diners, and make real-time reservations at restaurants anywhere – anytime.

Waze – Join drivers who share real-time traffic, and road information to save time and gas money, and improve daily commuting for all.

Houston Transit Tracker – Easily get around on the Metropolitan Transit Authority in the greater Houston area.

HotelTonight – Get great last-minute deals at top-rated hotels, from tonight to seven days out.

World Customs and Cultures – An at-a-glance reference, this app covers the discreet and not-so-discreet cultural differences a business traveler may encounter in 165 countries.

Houston Press App – Essential guide for what to see, where to eat, and what to do – for free.

GLOBAL EXPERTISE FOR SUCCESSFUL RELOCATIONSGraebel worldwide offices are staffed with global relocation industry experts who are ready to help companies and their assignees on long- or short-term assignments in Houston – or anywhere on six continents. As the industry leader, Graebel Relocation proactively provides pre-departure to ongoing assistance, helping clients’ employees remain productive throughout the assignment. For answers to questions concerning relocations to Houston, contact Graebel today.

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The information contained in this document represents the current research of Graebel Companies, Inc. on the issues discussed as of the date of publication. This document is for informational purposes only and does not serve as an endorsement of products nor providers. Graebel cannot guarantee the accuracy of any information presented after the date of publication.

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CITY SYNOPSIS:

HOUSTON

HOUSTON