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June 14th, 2018 by Marco Santarelli
Best Houston Neighborhoods
Houston neighborhoods come with an urban charm and a family-friendly vibe. Houston alternately makes the news for massive traffic jams, hurricanes that periodically hit the city and its rampant rate of growth. For example, Hurricane Harvey flooded more than a hundred thousand homes in August, 2017. This initially froze the Houston real estate market. However, the city is getting back to normal. And factors like affordable housing and good paying jobs are still drawing people to the area. If you’re looking for the best experience of Houston city, read this article to find some of the best Houston neighborhoods to live in or to purchase investment properties. You will discover the 10 best Houston neighborhoods and their unique character, charms, amenities, and standard of living.
Houston Real Estate Market Trends 2018
Houston real estate market was in the news after Hurricane Harvey. After the hurricane hit, the nation learned how many homes, especially in west Houston, had suffered repeated “100 year floods”. But this didn’t stop the real estate market from remaining strong. Sheer demand for housing led many investors to snap up flooded properties for remediation and renovation. By the time 2017 drew to a close, buyers closed on 3.5% more homes than they bought in 2016. Median home prices, too, were up 3.8% year over year. However, that doesn’t mean that there aren’t better or worse locations in which you could buy rental real estate. The best Houston neighborhoods are those close to major job centers and are considered livable, while newly constructed homes tend to be too expensive for potential landlords.
According to Zillow.com, the median home value in Houston is $176,100. Houston home values have gone up 6.1% over the past year and Zillow predicts they will rise 1.6% within the next year. The median list price per square foot in Houston is $163, which is higher than the Houston Metro average of $120. The median price of homes currently listed in Houston is $335,000. The median rent price in Houston is $1,538, which is lower than the Houston Metro median of $1,600. The percent of delinquent mortgages in Houston is 1.2%, which is lower than the national value of 1.6%.
According to Trulia.com, Houston real estate market trends show a 1% week-over-week rise in average listing price and a 3% rise in median rent per month.
10 Best Houston Neighborhoods To Buy Real Estate In 2018
You won’t feel limited when it comes to choosing best neighborhoods to live in Houston. There’s something for every age and stage in life. Best of all, the Houston enjoys some of the lowest housing costs in the nation. When compared to the 20 most populous metros, housing costs in Houston are 36.6 percent below average. Here are the 10 best Houston neighborhoods to live or invest in 2018:
Greater Heights, Houston
Greater Heights is a suburb north of Highway 10 and west of I-45, and it is a short hop to Hardy Toll Road. This community is within commuting distance of jobs in downtown Houston and all of the northern suburbs. Public schools in the area range from 4 to 6 on a 1-10 scale. One of the highlights of this community is being close to the Northline Commons.
River Oaks, Houston
River Oaks is so hot that Trulia reports average rents of $2500-$3000 per bedroom. St. John’s upper and lower schools are located in the heart of this community. The public River Oak’s elementary school received a 10 out of 10 from Greatschools.com. Nearby Lanier Middle School was rated 10/10, as well. Lamar High School was an average 5 out of 10. This community is a short hop from I-69 and Highway 610 without leaving residents to live with the noise.
Uptown puts residents right next to Highway 610. St. Michael Catholic School and Fusion Academy are located in this neighborhood. There are several other private schools in the area. Public schools in this community are average. One of the reasons why people pay such high rent here is the incredibly short commutes given the fact that you’re living in Houston. The median rental rate per bedroom is more than $1500 per month.
EaDo or Eastern Downtown sits due north of Gulf Freeway and east of South Freeway. The community costs a little more to live in than downtown but is safer than downtown. Property is appreciating here much faster than downtown, making it a good place to invest in rental real estate.
Museum District, Houston
The Museum District is due west of the Medical Center, putting residents in easy reach of both major medical employers and downtown Houston jobs. You do have to earn two to three times as much to afford to live here. This area is attractive to both young adults and empty nesters who want to live near the 19 museums in the area. Others appreciate the proximity to Rice University, whether they work there or attend the school. This makes the Museum District one of the best Houston neighborhoods for long term rental prospects.
Downtown Houston is still attracting many new residents because of its proximity to major employers and excellent public transit. Real estate developers have been building condos for both the middle and top of the real estate market. Downtown Houston has an over-supply of luxury condos, and half a dozen projects have gone bust. This makes this one of the best Houston neighborhoods for finding cheap condos to buy, hold and rent out.
West University Place, Houston
West University and the Southside Area was one of the highest appreciated inner ring neighborhoods in Houston. West University Elementary School was given 10 out of 10 points by Great Schools. The area is so popular that you need to earn around $340,000 a year to be able to afford to live here. This is one of the best Houston neighborhoods for investing for both rental income and property appreciation.
Rice Military, Houston
The Rice Military neighborhood is just southwest of Washington Avenue/Memorial Park. Rice Military is an excellent real estate investment opportunity. You can rent to students attending Rice University or those that can’t afford to live in more desirable communities. This community is far more affordable than nearby upscale Memorial Park. There are several quality private schools in the area, while public schools in the area are average. This is one of the best Houston neighborhoods for investing in multi-family housing due to guaranteed demand.
Several Houston suburbs have appreciated significantly as many Houston residents settle there. For example, the suburb of Humble has gone up in value along I-69. Humble’s public schools have average scores of 4 to 6 according to Greatschools.com. There are several private schools in Humble, as well. Humble is one of the more popular suburbs in the area, demonstrated by the fact nearby Kingswood has declined.
Webster, Texas real estate has gone up more than Nassau Bay and Friendswood. This is interesting, since Nassau Bay sits on the shore, perched between Space Center Houston and the namesake Bay. Webster is directly southwest of the NASA Johnson Space Center, while residents on the east side are close to Clear Lake. Homes here are in demand because the community is a short trip up I-45 to Houston for those who don’t work for NASA or local oil and gas companies. This is one of the best Houston neighborhoods for real estate investing.
Why Should You Invest in Houston, Texas?
Houston is one of the fastest growing cities both in terms of population and jobs. This is driving up property values while guaranteeing a large population of renters. The city provides a number of opportunities for investing in up and coming neighborhoods, communities whose demographics guarantee a large supply of renters and fast-appreciating areas that are a good way to generate both capital gains and rental income.
If you are a beginner in rental property investing, it very important to read good real estate books and learn from the savvy investors who have made fortunes by investing in some of the best real estate markets like Dallas real estate market and Birmingham Real Estate Market. We also recommend the below mentioned 8 hottest real estate markets for investors looking to build their portfolio of single family rental properties. Following the housing market decline in 2007, single family rental properties became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate. Single family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units. Below are some of the best places to invest in real estate in 2018 especially for turnkey rentals.
Hurricane Harvey flood damage
*The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified.
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