Tighter markets and a strong economy have the Texas city standing high on solid footing. John Daugherty Realtors, the city's luxury real estate firm, sold more than $2 million in residential properties a day in March -- a 50% increase in sales over the same time last year. "1996 was our best ever, with a sales volume of $450 million. We expect to do even better this year," says John A. Daugherty Jr., president of the 30-year-old firm. The office market is one of the strongest in years. Industrial has the lowest vacancy rate in two decades The multifamily segment is experiencing solid growth and rental rate increases.

       Even retail, where a torrid pace of development over the last few yea. has left analysts and shoppers struggling to catch their breath, is doing well. "Houston is back," says Walter Ross, chairman emeritus of PM Realty Group, a Houston-based real estate service firm. "The city is enjoying the best real estate market in years." So is the Houston economy. "The outlook for Houston is bullish," says Martin Fein, president of Corrigan*Fein Real Estate Services. "We're getting some bullish signs from the oil industry, which is in good health. Having been through boom and bust, it feels like we're on solid footing."


Text by: PRIMEDIA Business Magazines & Media Inc.