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January 18th, 2018 by Marco Santarelli
The Texas real estate market has been pretty quiet for a little under a decade now, but the real estate market in Houston has managed to remain relatively consistent while its surrounding areas have dragged their feet. There was a time when Houston seemed immune to the highs and lows of housing cycles, but it now seems to have joined the pace of the national average. But its rate of appreciation continues to be slightly above the national rate. The Houston Real Estate Market is becoming a hotbed of buyer activity that could be really beneficial for real estate investors; just ask the multitude of overseas investors who are choosing Houston as the city of choice to invest in for the foreseeable future.
With an extremely diversified economy and a huge demand for housing, the Houston real estate market remains one of the top markets in the US for real estate investing. The most recent population figures for the city show a figure of more than 2.3 million people, and the past two decades have seen billions of dollars in both public and private investment to develop areas and make Houston a more attractive place to live and to visit. Residential units, hotels, office buildings, restaurants; the city goes into 2018 with continuing development projects that promise to keep the real estate market strong.
Houston Real Estate Market After Hurricane Harvey
Hurricane Harvey had some fascinating and somewhat surprising effects on the Houston Real Estate Market. Harvey’s devastating economic impacts have a silver lining for home buyers in the Houston. Houston real estate market forecasts look promising after the hit the city took from Hurricane Harvey in 2017. Big weather events hit many areas of the USA hard last year, and the costs of repairing the damage have been astronomical. But Houston has shown its trademark resilience, and 2018 is predicted to see real estate growth of 2.8% in the city, meaning now would be a good time to invest. Hurricane Harvey tremendously impacted the real estate market in Houston, Texas. Houston had some of the largest swings in real estate value. So what were the economic ramifications of Hurricane Harvey on this delicate market?
First, people have renewed interest in houses that were located in areas that did not flood. This isn’t a particularly surprising statistic. Buyers now have confirmation that these areas can survive a catastrophic event and that they won’t be in any danger of damage. A recent trend, though, has been that homes in areas that were damaged by Hurricane Harvey have started to see a pick up in sales. Many houses that were damaged are being quickly sold to real estate investors. They saw an opportunity after Hurricane Harvey to buy damaged homes on the cheap in the Houston Real Estate Market. This has, in turn, led to Houston becoming a valuable “hot spot” for the real estate market in the US. In October alone, 6,381 homes were sold in the Houston Real Estate Market, an increase of 7.5% over the same period of time last year. Agents are not only selling houses at a faster rate, but they are also commanding a higher price for their sales. Realtors are selling houses in Houston, Texas for over $7,000 or more than in the previous years.
Perhaps the largest increase, though, has been in rental marketing. People whose houses Hurricane Harvey damaged have been looking to rent since the hurricane struck in late October. In fact, the rental market in Houston is approaching an all-time high. Investors are also intrigued by this statistic as it allows them to make money off of houses they may not be residing in at a given time. This has further contributed to an increase in the housing market in Houston, Texas. The rental statistics for single-family homes and townhomes/condominiums are staggering. Single-family homes saw an increase of 83.6 percent over a 365 day period while townhomes and condominiums saw an increase of a mind boggling 92.2 percent. It is not surprising, then, that investors have flocked to the area with the idea of making a quick buck. As many have learned, the profit that could be acquired in this area is immense.
Houston Housing Market 2018
Houston housing market will remain in the recovery mode in 2018 following devastating floods from Hurricane Harvey. The 2018 Housing market predictions for US indicates that people living in more expensive cities such as New York, Los Angeles, and San Francisco now hope to flock to cheaper living cities such as Houston, Texas. Many workers are fed up with the costs in these regions and are having difficulty surviving in areas with labor shortages, rising mortgage rates, and higher lumber costs. All these factors have led experts to believe that the housing market in Houston is on a significant upward trend in 2018.
The housing market in Houston is in exciting new territory. Although Harvey’s effects were absolutely devastating, the hurricane also contributed to the Houston housing market’s new rise after Harvey. Houston’s inspiring efforts to come together and recover shows the resilience of the people there and the city’s strength. The government’s quick response to the tragedy and their overwhelming desire to help the people exhibits the city’s importance on a national, and continental, scale.
Best Things About Living In Houston
Houston is by far the country’s number one job creator, the home of America’s booming energy industry, is more diverse than New York City (PDF) and lets you stretch a paycheck farther than anywhere else in the country. For those of you who do not know, let us discuss what is Houston famous for.
Houston Interesting Facts
To know more about Houston Interesting Facts, read his blog – 17 Facts That Make Houston the Best City in America.
Houston Turnkey Properties
Norada Real Estate Investments is a premier source for Houston Turnkey Properties. You can’t go wrong with this Houston turnkey property investment. The Houston turnkey properties are fully renovated with turnkey property management in place for out state investors. The properties have a great cash flow and appreciation potential as well.
The reason you should buy investment Properties in Houston, Texas is that because of following statistics:
Houston Housing Prices Trend
The Houston Housing Prices Trend is from Metropolitan Statistical Area.
Houston Real Estate Market Forecast
What is the current Houston Real Estate Market Trend like? The Houston metro area offers great opportunities for investors who are looking for a stable market that offers both cash flow and equity growth at a price that is STILL well below their replacement value.
According to Realtor.com, there are 13,086 Homes For Sale and 6,471 Homes For Rent.
Median Listing Price = $285,000
Price per Square Foot = $130
Houston Real Estate Market Inventory Trends
Best Houston Neighborhoods
These are some of the best Houston neighborhoods to buy real estate in 2018:
Kingwood Area – Houston Real Estate Market
The top pick is a suburb called Kingwood Area. It is highly populated with more than 83,000 people. House prices and rent in Kingwood area are both above average here, and the shores are a definite crowd pleaser. The links to the city center are convenient, but Kingwood has plenty to offer in itself. A good place to consider with its potential for growth and development.
Zillow has 260 homes for sale and 121 rental listings in Kingwood Houston.
El Lago – Houston Real Estate Market
This suburb is just outside Taylor Lake Village, and is very sparsely populated with fewer than 3,000 residents. House prices and rent in El Lago are fall slightly below the national average here, so the potential for growth is rather exciting. It’s a quiet neighborhood with a good jobs market, so very appealing for potential buyers or tenants.
Zillow has 7 homes for sale and 3 rental listings in El Lago TX.
Clear lake – Houston Real Estate Market
Clear Lake city is a master-planned community located in southeast Harris County, Texas, within the Bay Area of Greater Houston. It is the second-largest master-planned community in Houston — behind Kingwood. Clear Lake enjoys all the amenities you’d expect from a larger city, but is actually quite small and inviting. And the large lake is a definite selling point. The population is quite high, topping 83,000, and house prices are a little above the national average. The open spaces here are worth noting, because they are attractive for buyers and they show potential for development, so a little research could unveil a good investment opportunity in Clear Lake. Zillow has 194 homes for sale in Clear Lake Houston.
Zillow has 184 homes for sale in Clear Lake Houston and 48 rental listings in Clear Lake Houston.
Addicks Park Ten – Houston Real Estate Market
Addicks Park Ten is located in the westernmost part of the City, north of Interstate 10. Most of the area is made up of the Addicks Reservoir, a large flood control dam. One of the more affordable suburban neighborhoods, Addicks Park Ten ticks a lot of boxes for potential buyers or tenants. It has good connections to the city center, and plenty of things within its own boundaries to attract new residents. House prices fall pretty close to the national average here, but the Houston magic of price growth could make investment here profitable. And average rent is higher than the national average here.
Zillow has 8 homes for sale and 7 rental listings in Addicks Park Ten Houston.
Taylor Lake Village – Houston Real Estate Market
Taylor Lake Village is a city in Harris County, Texas, United States. Taylor Lake Village is another area where the median home value is only a little above the national average, but rental values are sky high. Another beautiful suburban neighborhood, Taylor Lake Village is something of a tourist attraction because of close proximity to NASA and the Johnson Space Center. Purchasing a property here could be a real money-spinner if placed on the tiny rental market, but house price growth is likely to net you a tidy profit as well.
Zillow has 27 homes for sale and 3 rental listings in Taylor Lake Village TX.
Greatwood – Houston Real Estate Market
Greatwood is a census-designated place and master-planned community located in the extraterritorial jurisdiction of Sugar Land within Fort Bend County, Texas, United States. For its mix of city location and rural surroundings, Greatwood will tick a lot of boxes for many buyers. Property values are above average here, but rent prices are extremely high due to the shortage of rental properties available – 94% of Greenwood homes are occupied by their owners. This should be an appealing statistic for investors, and the house price growth may follow suit as the balance between housing and open spaces continues to shift.
According to har.com,
Homes for Sale in Greatwood = 60
Average Price = $440,124
Average Bedrooms = 4.05
Average Price/Square Ft = $127
Zillow has 25 homes for sale and 5 rental listings in Greatwood Sugar Land, TX.
Memorial – Houston Real Estate Market
The Memorial area of Houston, Texas is located west of Downtown, northwest of Uptown, and south of Spring Branch. The first of the more distinctly urban areas on our list for Houston, Memorial has a population of 52,000 with real estate values way above the national average. The median property price is $442,500, and the median household income is more than twice the national average. For those that can afford it, Memorial is a great place to live and it wins the niche.com award for best place to raise a family. Memorial homes enjoy easy access to schools, stores, restaurants, entertainment centers, and parks. Investors looking to rent out properties might find Memorial most alluring. According to Houston’s Best Public Schools, the area is zoned to some of the top ranked schools in Texas including Memorial Drive Elementary, Frostwood Elementary, Wilchester Elementary, Bunker Hill Elementary, Memorial Middle and Memorial High.
Zillow has 274 homes for sale and 353 rental listings in Memorial Houston.
Lake Houston – Houston Real Estate Market
Though another suburban district, Lake Houston has a considerably largest population above 73,000, with real estate values averaging close to the national median at $175,915. The Lake Houston region consists of several growing communities. From golf courses to country living and from upscale mixed-use developments to signature shopping, the Lake Houston Area has it all. The listings on niche.com rate Lake Houston as the safest place to live in the Houston area, so the community is appealing to buyers looking for the more urban type of suburb. Interestingly, median household income here is nearly twice the national average, suggesting that the job market performs highly for such an affordable area.
Zillow has 244 homes for sale and 26 rental listings in Lake Houston.
New Territory – Houston Real Estate Market
With a population of 15,494, New Territory is another suburban neighborhood where house prices and rental values are above the national average. New Territory is a census-designated place and master-planned community within the extraterritorial jurisdiction of Sugar Land in Fort Bend County, Texas, United States. It is a popular area with quiet streets and lots of community programs, and as such the population is likely to keep rising. As usable land for housing decreases with current housing developments, property prices are likely to increase, so the investment opportunity is there.
According to har.com:
Homes for Sale in New Territory: 52
Average Price/Square Ft: $121
Average Price: $382,739
Average Bedrooms: 4.02
Zillow has 101 homes for sale and 68 rental listings in New Territory Sugar Land.
Cinco Ranch – Houston Real Estate Market
Cinco Ranch is a census-designated place and master-planned community located in the extraterritorial jurisdiction of the city of Houston within Fort Bend and Harris counties in the U.S. state of Texas. This suburban neighborhood is known for its great community and array of superb schools and shopping centers. Residents praise the comfort and safety of the area, and the population is listed as 17,015 on niche.com. Median home values are considerably above the national average at $292,500, and the job market caters for above-average earners. The area attracts buyers and renters who can afford the prices, so as growth continues there are profits to be made.
Zillow has 59 homes for sale and 58 rental listings in Cinco Ranch,TX.
Houston Real Estate Market – Conclusion
Houston is a diverse city with lots to offer that will cater to the tastes of a variety of potential buyers and tenants. Many of Houston’s neighborhoods are some of the most attractive places to live in the whole of Texas, and it’s not hard to see why. With a great balance of urban regions and open spaces in the suburbs, the potential for development is clear to see, and the natural features of the land are some of the most attractive features you could hope for in an investment district. According to the Bloomberg report on Houston Real Estate Market – “Far from declining, prices and rents are expected to rise given the sudden housing shortage. Out-of-state investors have even started to swoop in to acquire damaged homes to repair and sell or rent.”
The forecast for Houston Real Estate Market is good, and current housing prices are relatively low in the wake of Hurricane Harvey, so if you want to get on board the Houston housing investment market then now would be a great opportunity to do so.
We recommend 7 other real estate markets for turnkey rental property investing:
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