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 rental neighborhoods in Houston to live in or to purchase investment properties. You will discover the 10 best rental neighborhoods in Houston and their unique character, charms, amenities, and standard of living.
Houston Real Estate Market Trends 2019
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 $186,000. Houston home values have gone up 5.4% over the past year and Zillow predicts they will rise 1.9% within the next year. The median list price per square foot in Houston is $148, which is higher than the Houston-The Woodlands-Sugar Land Metro average of $123. The median price of homes currently listed in Houston is $300,000. The median rent price in Houston is $1,525, which is lower than the Houston-The Woodlands-Sugar Land Metro median of $1,625.
According to Trulia.com, Houston real estate market trends show a 0% week-over-week rise in average listing price and a 3% rise in median rent per month. Trulia has 8,761 resale and new homes for sale in Houston, TX, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process. The median rent in Houston is $1,595 and the average listing price is $340,733.
Where To Buy Investment Properties In Houston, Texas?
You won’t feel limited when it comes to choosing the best neighborhoods in Houston to buy investment properties. 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 is the list of 10 neighborhoods in Houston where you can buy a house or invest in a rental property.
1. 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.
2. 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.
3. Uptown, Houston
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. It is a great place to buy an investment property in Houston, Texas.
4. EaDo, Houston
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 in Houston to invest in rental properties.
5. 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 neighborhoods in Houston for buy investment properties. Rental rates are falling in most inner loop neighborhoods because of the high supply relative to demand.
The rental rates would look even worse if it were not for the influx of new, high-rent properties coming onto the market, pulling the average up. Rents here are stable and rival those of the Medical Center district.
6. Downtown Houston
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 neighborhoods in Houston for finding cheap condos for rental property investment.
7. 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 neighborhoods in Houston for buying an investment property in 2019. Real estate investing in this Houston suburb will lead to a good rental income as well as a property appreciation.
8. 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 a great neighborhood in Houston for investing in multi-family investment properties due to guaranteed demand.
9. Humble, Texas
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 most popular suburbs in Houston, demonstrated by the fact nearby Kingswood has declined. Humble is great place in Houston to buy investment properties for rental income.
10. Webster, Texas
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 buying investment properties in 2019.
How To Find Best Investment Properties In Houston?
Buying an investment property is different from buying an owner-occupied home. Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor is your ability to find great real estate investments.
Maybe you have done a bit of real estate investing in Houston, TX but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. If you invest wisely, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.
At Norada Real Estate investments, we offer “Investment Properties” which are located in some of the best neighborhoods of Houston, TX. Our properties in Houston are designed to make money as rentals, which means you must look at it solely as an income producing entity just like any other business.
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Norada Real Estate investments strives to set the standard for their industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in various growth markets. We can help you succeed by minimizing risk and maximizing profitability. You can contact us for a “Free Strategy Session” by clicking here.
We recommend that you should invest in the Houston real estate as it 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.
Houston is the #1 Market in the US for Job Creation
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.
*Remember, caveat emptor still applies when buying a property anywhere. 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 through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
Hurricane Harvey flood damage
Houston price appreciation https://www.trulia.com/real_estate/Houston-Texas https://www.houstonchronicle.com/business/article/Harvey-ushered-in-a-new-reality-for-local-real-12866924.php
Rents in Houston https://www.rentcafe.com/average-rent-market-trends/us/tx/houston
Hottest Inner Loop Neighborhoods / West University https://www.houstonproperties.com/houston-neighborhoods/hottest-inner-loop