Homes For Sale In Houston

End of the shuttle era hits Clear Lake real estate

The thousands of layoffs associated with the end of NASA's space shuttle program are putting added pressure on an already stressed housing market.

Homes in the Clear Lake area have been staying on the market longer and more are going up for sale, according to people who live in the area and real estate agents who work there.

But depending on how fast — and where — former NASA contractors can find other jobs, the impact on housing may turn out to be more psychological than economic.

"People are very nervous about it," said Jim Gaines, an economist with the Texas A&M Real Estate Center. "The fact that there's tight credit makes it more difficult to sell homes. People are moving to Houston, but it's not as active a market."

According to projections, about 4,200 people have or will lose their jobs in cutbacks primarily tied to the termination of the space shuttle program.

More than half of those workers already have been let go, said Sue Leibert, Shuttle Workforce Transition Manager with NASA. The remainder are expected to receive pink slips this year.

While many of the NASA workers live in the neighborhoods around Johnson Space Center, about 25 miles south of downtown Houston, other industries have driven the area's growth in recent years - a fact that should soften the blow.

"It's not all just NASA-driven," said Steve Von Hofe, Houston division president of home builder Taylor Morrison, which builds homes in the area.

Aside from aerospace, chemical, health care and education industries are also key employers in the Clear Lake area.

Houston's oil and gas sector has been absorbing a portion of the laid-off workers. Major oil producers, oil field services providers and chemical makers are snapping up jettisoned engineers and other technical experts whose skills are transferable to the energy industry.

Keeping former space workers in Houston helps mitigate the fallout to the region's housing market, which has already been tested by the economic downturn.

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