The economic recovery continues due to increasing COVID-19 vaccination rates that have allowed the reopening of the economy. Based on the most current data from the Texas Department of State Health Services, 54.5 percent of the state’s population is fully vaccinated1. Unfortunately, after months of decline in COVID-19 cases, the number of new cases has increased because of the number of people not yet vaccinated and the emergence of the Delta variant, which has shown to be more contagious. This has increased uncertainty surrounding the end of the pandemic. Until the virus is beaten, a full recovery cannot be secured.
Growth prospects for the Texas economy have improved for 2021 because of the economy’s reopening and, to some extent, the uptick in the oil industry. The strong recovery has caused supply-chain bottlenecks, putting upward pressure on prices and raising inflation concerns. Whether inflationary pressures are transitory is uncertain because of unknowns about whether the economy is fundamentally different coming out of the pandemic and the uncharted territory of recovering from a health crisis.
It’s still not clear how different the economy will be coming out of the pandemic as some changes become permanent. It is possible that some structural forces (e.g., the traditional work environment, digital divide) that were prevalent before the pandemic will no longer hold after it ends. Because this recession was caused by a health catastrophe, the recovery path will probably be different than that of previous recessions.
The apartment market was aided in 2021 by further rounds of fiscal stimulus enacted by the federal government and increasing vaccination rates. Click to read more at www.recenter.tamu.com.