We’ve all heard the jokes. I went to the gas station and asked for five bucks worth of gas. They gave me a tanker. Yes, lower prices at the pump are nice. But too low and it starts to hurt producers, who have to cut back on output and investments. Layoffs ensue, jobs disappear, bankruptcies follow, suppliers suffer, … And none of that is ever good for the economy and housing market. Certainly not during a pandemic. But it might happen.
The following five metro housing markets are highly dependent on the oil industry, their local economies are already weaker, and their housing markets were already forecasted to underperform the overall US market. Any sharp deterioration in the oil industry will have a severe negative impact on these markets.