We will discuss the latest Houston real estate market trends & news and find out how they can affect the investors and homebuyers in the latter half of 2020. This housing market has been impacted by the pandemic and slumping oil prices which led to a decline in home sales down. However, the market conditions are showing some signs of improvement due to growing consumer interest and pent up demand after two months of continuous decline in sales.
A huge number of homes went under contract in May after COVID-19-related stay-at-home orders expired which led to a surge of closings in June. Home sales in the Houston housing market are back up to levels considered to be normal for the summer buying season. Homes priced between $250,000 and $500,000 led the way among all housing segments, soaring 28.3 percent year-over-year. The second-best performer consisted of homes in the $500,000 to $750,000 range, which jumped 18.6 percent, according to H.A.R.
Just like the previous month, closed sales were up by 22.2 percent for the week ending July 6 fueled by the increase in listings that went under contract in May and June. However, the fear of pandemic and its impact on real estate sales is still looming large due to spike in cases across greater Houston and other parts of Texas. Whether home sales would continue to climb up or plunge again in the third quarter of 2020 is not certain.
New listings were down for a fifth consecutive a week during the week ending July 6 compared to 2019. Pending sales, which have been strong over the last several weeks, also reflected mounting concerns related to a spike in coronavirus cases with a 3.6 percent decline for the week ending July 6 compared to the same week in 2019.
The complete “HOUSTON HOUSING MARKET REPORT” is given below.
Is it a good time to buy a house in Houston? Yes, as Houston is currently a buyer’s real estate market. Currently, home prices in Houston are not rising due to plunging oil prices and terrible pandemic. So, if you want to invest in Houston real estate, then now would be a great time to do so. The real estate appreciation rate in Houston in the latest quarter was around -0.44% which equates to an annual appreciation rate of -1.74%—which indicates that the prices are not going to rise.
The forecast by Zillow also points in the same direction—a drop of 1.5% in home values over the next 12-months. However, in the past ten years, the annual real estate appreciation rate has amounted to 4.61%, according to NeighborhoodScout.com. This puts Houston in the top 10% nationally for real estate appreciation.
Clearly, for the long-term investment, you cannot ignore underestimate Houston. Investing in a rental property for the long-term would build your equity and also generate cash-flow through rental income. If you want to increase your cash-flow in 2020, you will find great deals in the Houston real estate market.
Let’s continue to explore Houston and the surrounding metro area housing market amid the coronavirus pandemic and figure out what lies ahead for investors, sellers, and homebuyers. You will get some idea of the fundamentals of this hot real estate market.
Houston Housing Market: Prices & Trends 2020
We shall now discuss the Houston real estate trends & news, and compare it with the past couple of years. We shall mainly discuss median home prices, inventory, economy, growth, and neighborhoods, which will help you understand the way the local real estate market moves in this region. Houston is a minimally walkable city in Harris County with a population of approximately 2,112,810 people.
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. Houston has always a hotbed of buyer activity; just ask the multitude of overseas investors who choose Houston as the city of their choice to invest in real estate.
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. With an extremely diversified economy and a huge demand for housing, Houston remains one of the top markets in the nation for real estate investing.
Houston is one of the country’s top job creators, the home of America’s booming energy industry, is more diverse than New York City, and lets you stretch a paycheck farther than anywhere else in the country. Houston is also one of the hottest real estate markets in the nation.
Houston Real Estate Market Before COVID-19 Pandemic
2019 was a strong year for Houston’s real estate market. Single-family home sales, total property sales, pricing, total volume, and inventory all increased year-over-year from 2018. The median sale price rose 4.7% from 2018 to $244,000. According to Realtor.com's pre-pandemic forecast, the Houston-The Woodlands-Sugar Land, Texas was expected to see a 0.3% growth in sales and 0.2% in home prices in 2020.
The home prices were expected to flatten nationwide, increasing by just 0.8% and buyers were expected to continue to move to affordability, benefiting mid-sized markets. According to the Bloomberg report on Houston Real Estate Market – “Far from declining, the Houston home 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.”
As was expected the Houston housing market started well as we entered into 2020. Sales of single-family homes went up by around 14% in January as compared to the previous year, a big start to 2020 that was driven by low mortgage rates and demand for homes priced between $250,000 and $750,000.
The median sold price rose by 4.5 percent to $234,000 and the average price climbed 4.6 percent to $291,034. Home sales experienced another double-digit gain in February 2020 as buyers came out in droves to take advantage of low mortgage rates. Total dollar volume for March jumped 11.0 percent to slightly more than $2.6 billion.
Then came the pandemic which interrupted the real estate sector in this region. Before April, home sales had been outpacing 2019’s record volume as consumers took advantage of historically low-interest rates. Home sales starting declining from April onwards as the Coronavirus pandemic gripped the nation. After a stellar performance in February, the month of March saw a very little disruption in the real estate activities.
According to HAR, Houston home sales were more than 11 percent ahead of the levels at this point in 2019. Buyers were taking advantage of historically low mortgage interest rates through the first half of the month. 7,566 single-family homes were sold in March compared to 6,995 a year earlier, accounting for an 8.2 percent increase and the ninth consecutive month of positive sales.
The single-family home median price rose by 4.1 percent to $249,900, and the average price rose by 3.8 percent to $309,785. Both figures represent the highest prices ever for March. Sales of all property types totaled 8,965, up 6.9 percent from March 2019. Inventory of single-family homes was at a 3.5-months of supply, down from 3.8 months last March.
Impact of Pandemic on The Houston Housing Market
Single-family home sales saw a double-digit drop of 19.1 percent in April with 6,199 units sold throughout greater Houston compared to 7,666 a year earlier. Prices remained unaffected. The median price reached the highest level ever for an April, increasing 2.4 percent to $251,000. Inventory of single-family homes was at a 3.6-months of supply, down from 3.9 months last April.
Houston home sales fell for a second straight month in May due to the impact of COVID-19. The steepest decline was seen in the most affordable and the most expensive segments. Homes priced below $100,000 dropped more than 37 percent while those priced above $750,000 dropped more than 56 percent.
In May, single-family home sales fell with a year-over-year decline of 20.2 percent, marking the second straight month of declines. The new listings have also declined. The inventory of single-family homes shrank to a 3.5-months of supply in May versus 4.1-months a year earlier. The Days on Market (DOM) figure for single-family homes grew from 54 to 58 days.
Total dollar volume dove 25.9 percent to $2.23 billion. The average price of single-family homes fell from 7.4 percent to $298,199, the first decline since January 2018. The median price was remained unchanged at $249,000. Townhome/condominium sales dropped by 36.0 percent. The average price of condos was down 2.3 percent to $206,146. The median price was up 2.9 percent to $175,000.
Below is the latest monthly report of the Greater Houston Area Housing Market. The source of this report is the Houston Association of Realtors (HAR). The report compares key housing metrics of the entire Greater Houston area from June 2020 with June 2019.
| Single-family home sales rebounded from two straight months of declines with an increase of 15.7 percent as compared to last year. |
| The Days on the Market figure for single-family homes grew from 50 to 56 days. |
| Total property sales were up by 18.3 percent with 11,153 units sold. |
| Total dollar volume climbed 15.1 percent to $3.3 billion. |
| The average price of single-family homes fell by 0.6 percent to $319,881. |
| The median price set a new record high of $262,000 as it rose 3.6 percent year-over-year. |
| Inventory of single-family homes was at a 3.2-months of supply, down from 4.3 months (last June). |
| Townhome/condominium sales reversed three monthly declines, rising by 1.9 percent. |
| The average price of condos was down by 5.4 percent to $212,216. |
| The median price was down by 1.8 percent to $174,350. |
| The volume of townhome/condominium leases remained unchanged; the average rent was up by 7.9 percent to $1,731. |
Houston Rental Market Trends
The average rent for an apartment in Houston is $1,118, a 2% increase compared to the previous year, according to RENTCafe. The average size for a Houston, TX apartment is 880 square feet with studio apartments being the smallest and most affordable. 1-bedroom apartments are closer to the average, while 2-bedroom apartments and 3-bedroom apartments offer more generous square footage.
39% of the households in Houston, TX are renter-occupied while 60% are owner-occupied. More than 80% of the apartments in Houston fall in the price range of $1,500 or less. 10% of the apartments are in the price range of $1,500 to $2,000 whereas 10% cost more than $2,000/month. The most expensive neighborhoods in Houston are Uptown ($1,402), Neartown – Montrose ($1,914), Midtown Houston ($1,925), and Downtown Houston ($1,979).
According to RentJungle, as of June 2020, the average rent for an apartment in Houston, TX is $1379 which is a 6.16% increase from last year when the average rent was $1294, and a 0% increase from last month when the average rent was $1379.
- One-bedroom apartments in Houston rent for $1177 a month on average (a 5.27% increase from last year).
- Two-bedroom apartment rents average $1517 (a 7.25% increase from last year).
- The average apartment rent over the prior 6 months in Houston has increased by $49 (3.7%).
- One-bedroom units have increased by $35 (3.1%).
- Two-bedroom apartments have increased by $81 (5.6%).
The most affordable neighborhoods where the asking prices are below the average Houston rent of $1,118/mo:
- South Park, where the average rent goes for $599/month.
- Greater Fifth Ward, where renters pay $725/mo on average.
- Golfcrest – Bellfort – Reveille, where the average rent goes for $728/mo.
- Heather Glen, Hidden Valley, and Woodglen Village, where the average rent goes for $730/mo.
- Westchase, where the average rent goes for $1,028/mo.
- Mid West Houston, where the average monthly rent is $1,068.
- Eldridge – West Oaks, where renters pay $1,069/mo on average.
Houston Real Estate Market Forecast 2020 – 2021
Looking at the current statistics, what are the Houston real estate market predictions? Let us examine the price trends recorded by Zillow over the past few years. Since 2015, the median home prices in Houston have appreciated by roughly 26% from $152,000 to $191,907, according to Zillow’s index. The prices rose by 2.9% over the 12 months. Last year saw was the seventh consecutive year of home price gains.
The Zillow Buyer-Seller Index (BSI) shows that Houston is currently a buyer’s real estate market. This is computed monthly. According to their index, there exists a general lack of demand in Houston, and homes can linger on the market longer and ultimately sell for less, putting negotiating power in the hands of buyers. In other words, based on the last month’s key housing market indicators, current supply is exceeding the demand, giving buyers an advantage over sellers in price negotiations. There are more homes for sale than there are active buyers in the marketplace.
The latest Houston real estate market forecast is that the home prices may remain flat or decrease by 1.5% – in the next twelve months. This could also be due to the short term impact of the ongoing pandemic which has impeded the real estate sales activity in the entire nation.
Here is the visual representation of historical Houston home prices and the latest forecast until March 2021.
Here is a short and crisp Houston housing market forecast for the 3 years ending with the 3rd Quarter of 2021. The accuracy of this forecast for Houston is 76% and it is predicting a positive trend. LittleBigHomes.com estimates that the probability of rising home prices in Houston is 76% during this period. If this price forecast is correct, the Houston home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
The historical change in home prices for Houston-The Woodlands-Sugar Land, TX is shown below for the three-time periods. The Houston Home Price Index has increased for the last 29 consecutive quarters (data up to 3rd Quarter, 2018). The highest annual change in the value of houses in the Houston Real Estate Market was 18% in the twelve months ended with the 1st Quarter of 1982.
The highest growth in home values in the Houston Real Estate Market over three years was 28% in the three years ended with the 3rd Quarter of 2015. The worst annual change in home values in the Houston Market was -10% in the twelve months ended with the 3rd Quarter of 1987. The historical change in home values has been calculated until the 3rd Quarter of 2018. For the upcoming updates, you can visit LittleBigHomes.com.
| Time Period | Greater Houston Real Estate Appreciation |
| Last 5 Years | 40% |
| Last 10 Years | 51% |
| Last 20 Years | 146% |
The question now is what happens moving forward. These numbers can be positive or negative depending on which side of the fence you are — Buyer or Seller? It is quite evident that the ongoing pandemic has had a major impact on home sales in the Houston real estate market. Houston home sales dropped sharply in April & May from both the previous month and year as the housing market began to feel the full impact of the coronavirus outbreak and the state’s stay-at-home order.
However, as can be seen in the above reports released by HAR, the pent-up demand resulting from COVID-19 boosted home sales in June. Year-to-date sales are now on par with 2019’s record pace after lagging by 4.3 percent in May. Even though stay-at-home orders have expired, at the same time, the industry is also adapting to the current environment by conducting business using technologies such as virtual showings and e-signing to help buyers and sellers with their housing needs in the face of these challenges.
These measures are being taken in every state of the nation and have enabled consumers to forge ahead without compromising health and safety. While some economic activity has resumed, the housing market is expected to remain sluggish for the next couple of months.
Coronavirus has driven the Houston housing market into uncharted territory, however, we do know for certain that consumers have shown unwavering interest in real estate since the pandemic began,” said HAR Chairman John Nugent with RE/MAX Space Center.
OUR TAKE ON HOUSTON HOUSING MARKET FORECAST
Houston has been one of the hottest real estate markets in the country for years. It is also one of the hottest real estate markets for investing in rental properties. 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 many experts, Houston has been in seller mode for several years now and there’s no reason to think that will change in 2020. With a record no. of sales in 2019, the Houston housing market was off to a big start to 2020. Home sales experienced a double-digit gain in February 2020 despite the local economy in bad shape due to plunging oil prices.
Oil prices have a big impact on Houston's housing market. As oil prices plunge, it could mean a potential slowdown for Houston’s economy. Keeping aside the oil prices, the Houston Real Estate Market forecast for 2020 is still on a positive side. Before the pandemic, home prices in Houston were expected to continue to rise throughout 2020.
Although the desire to own a home remains strong, the combination of higher home prices and rising mortgage rates were making it increasingly difficult for many first-time buyers to afford one. Houston and the entire metro area market is so hot that it cannot shift to a complete buyer’s real estate market, for the long term.
In a balanced real estate market, it would take about five to six months for the supply to dwindle to zero. In terms of months of supply, Houston can become a buyer’s real estate market if the supply increases to more than five months of inventory.
And that’s not going to happen. Therefore, in the long term, the Houston real estate market remains strong and skewed to sellers, due to persistent imbalance in supply and demand. The below Houston Home Price Forecast is from Metropolitan Statistical Area. It shows that Houston is still headed for a strong rate of real appreciation for the next 60 months.
| 6.90% | 10.40% | 13.90% | 17.40% |
| Next 24 Months | Next 36 Months | Next 48 Months | Next 60 Months |
We think that the Houston housing market would remain neutral or a buyer’s real estate market. The home sales will drop temporarily without affecting the prices. Usually, this region remains skewed to sellers. However, in the current cycle, the home prices may remain flat to favor buyers.
This means you can probably buy a home for less than list price, and the seller might be willing to pay some or all of your closing costs. It is expected that there will be some increase in the inventory levels due to COVID-19. If buyer demand eases, we could see a positive influence on Houston's low inventory levels while at the same time seeing a negative impact on sales.
Whether you’re looking to buy or sell, timing your local market is an important part of real estate investment. Currently, the inventory remains relatively high in Houston. There are more homes for sale than there are buyers and homeowners are becoming more and more eager to sell their property.
While the rapid real estate appreciation Houston witnessed earlier in the decade has slowed, the combination of a strong economy, low unemployment, and a lack of inventory in many market segments continues to push home prices in Houston.
Real estate market forecasts given in this article are just an educated guess and should not be considered financial advice. Real estate prices are deeply cyclical and much of it is dependent on factors you can’t control. Many variables could potentially impact the value of a home in Houston (or any other market) such as big changes in the distressed, new-construction, or luxury home segments. There are also a wide variety of economic and political factors that can and do impact real estate markets. Most of these variables are difficult to predict in advance.
Houston Real Estate Market: Where To Find Homes For Sale?
If you are a home buyer looking to find homes for sale or rent in Houston we recommend you do that online or hire a local real estate agent. There are many sites where you can find homes available for sale on the market. Houston has a mixture of owner-occupied and renter-occupied housing units.
According to Neighborhoodscout.com, a real estate data provider, one and two-bedroom single-family detached homes are the most common housing units in Houston. Other types of housing that are prevalent in Houston include large apartment complexes, duplexes, rowhouses, and homes converted to apartments.
Single-family homes account for about 45% of Houston's housing units. Nearly 79,000 single-family detached homes were sold in the first 11 months of 2019, with year-to-date sales running 4.1 percent ahead of last year’s record volume. The total homes sold in the entire twelve months of 2018 were 82,229.
As we write this, there are 7496 homes for sale in Houston, TX on Zillow, an online real estate database company. Additionally, there are 1643 homes for rent. Under potential listings, there are about 25 Foreclosed and 60 Pre-Foreclosure homes. These are the delinquent properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).
- The median list price per square foot in Houston is $141, which is higher than the Houston-The Woodlands-Sugar Land Metro average of $124.
- The median price of current listings is $283,000.
- The median rent price in Houston is $1,500, which is lower than the Houston-The Woodlands-Sugar Land Metro median of $1,600.
There are currently 16,423 homes for sale and 8,059 homes for rent in Houston, Texas on Realtor.com, a real estate listings website. As we write this, the newly listed homes are 1,369. According to their statistics, in June 2020, Houston was a balanced real estate market, which means there was a healthy balance of buyers and sellers in the market.
Ideally, a buyer would prefer a sale to asking price ratio that’s closer to 90%. The sellers in Houston have managed to hold good leverage in these negotiations in the past month. On average, they could sell homes for 97.98% of the asking price. A seller would always prefer scenarios that can yield a ratio of 100% or higher. The median list price of homes in Houston, TX was $309K in June 2020, trending up 3% year-over-year. The median listing price per square foot was $150.
Houston Real Estate Foreclosure Statistics 2020
Here are some foreclosure statistics of the Houston housing market. As per the Houston foreclosure data by Zillow, the percent of delinquent mortgages in Houston is 1.2%, which is higher than the national value of 1.1%. There are currently 572 properties in Houston, TX that are in some stage of foreclosure (default, auction, or bank-owned) while the number of homes listed for sale on RealtyTrac is 2,111. In June, the number of properties that received a foreclosure filing in Houston, TX was 37% higher than the previous month and 60% lower than the same time last year.
| Potential Foreclosures in Houston | 572 (RealtyTrac) |
| Homes for Sale in Houston | 2111 |
| Recently Sold | 20,905 |
| Median List Price | $285,000 (3% drop vs May 2019) |
Top 5 Zips in Houston Having Highest Foreclosure Rates:
- 77045 – 1 in every 2180 housing units
- 77073 – 1 in every 2278 housing units
- 77021 – 1 in every 2475 housing units
- 77086 – 1 in every 2836 housing units
- 77059 – 1 in every 3069 housing units
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 homebuyers in the Houston. Houston's 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 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. 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 365 days 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. The housing market in Houston is in exciting new territory.
Although Harvey’s effects were 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.
Houston housing market remained in the recovery mode in 2018 following devastating floods from Hurricane Harvey. People living in more expensive cities such as New York, Los Angeles, and San Francisco flocked to cheaper living cities such as Houston, Texas. Many workers were fed up with the costs in these regions and were having difficulty surviving in areas with labor shortages, rising mortgage rates, and higher lumber costs. All these factors contributed to a significant upward trend in the Houston housing market in 2018.
Houston Real Estate Investment
Investing in the Houston real estate can be a worthy investment due to a steady rate of appreciation. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold. Should you consider Houston real estate investment? Houston is a diverse city with lots to offer that will cater to the tastes of a variety of potential buyers and tenants.
Residential units, hotels, office buildings, restaurants; the city is seeing continuous development projects that promise to keep the real estate market strong. 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. Let’s learn more about the factors that make Houston a good place for real estate investment.
Top Reasons To Invest In The Houston Real Estate Market | |
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Good cash flow from Houston investment properties means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt. Therefore, finding a good Houston real estate investment opportunity would be key to your success. If you invest wisely in the Houston real estate, you could secure your future. The best investment is now looking for a rental property that will generate good cash flow.
Your best tenants would be the retirees who intend to relocate to Houston and want to purchase property to rent out. The running costs for owning and managing a Houston rental property should not be high. While hiring a property management company you should expect to give up roughly ten percent of the rent for each property they manage. Remember to factor this loss into your calculations when budgeting for a new rental property.
The three most important factors when buying a real estate anywhere are location, location, and location. The location creates desirability. Desirability brings demand. There should be a natural and upcoming high demand for rental properties. Demand would raise the price of your Houston investment property and you should be able to get a good return on your investment over the long term.
The neighborhoods in Houston must be safe to live in and should have a low crime rate. The neighborhoods should be close to basic amenities, public services, schools, and shopping malls. A cheaper neighborhood in Houston might not be the best place to live in. A cheaper neighborhood should be determined by these factors – Overall Cost Of Living, Rent To Income Ratio, and Median Home Value To Income Ratio.
Houston's real estate prices are well above average cost compared to national prices. It depends on how much you are looking to spend and if you are wanting smaller investment properties or larger deals such as duplex and triplex in Class A neighborhoods. The inventory is low, but opportunities are there.
When looking for real estate investment opportunities in Houston or anywhere in the country, the generally accepted standard is to purchase a property that will give you a modest but minimum of 1% profit on your investment. An example would be: at $120,000 mortgage or investment cost, $1200 per month rental. That would be the ideal equation for example. Even with rent increases, buying a $500,000 investment property in Houston is not going to get you $5000 per month on rent.
The asking price of single-family homes in Houston (on Realtor.com) can start from $29,000 and can go up to $29.5M for a luxury property located in Westside neighborhood. You can find many new construction houses available for sale in Houston. Neartown – Montrose has a median listing price of $639,000, making it the most expensive neighborhood in Houston. Alief is the most affordable neighborhood, with a median listing price of around $155,000.
Even as Houston's home prices have reached new heights, the market remains attractive to residential real estate investors. As they continue to compete for potential investment properties at the lower end of the market, the challenges for first-time homebuyers will remain. The homebuyers won’t be able to outbid real estate investors and would end up renting.
As with any real estate purchase, act wisely. Evaluate the specifics of the Houston housing market at the time you intend to purchase. Hiring a local property management company can help in finding tenants for your investment property in Houston.
NORADA REAL ESTATE INVESTMENTS has extensive experience investing in turnkey real estate and cash-flow properties. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in many other growth markets in the United States. We can help you succeed by minimizing risk and maximizing the profitability of your investment property in Houston.
Consult with one of the investment counselors who can help build you a custom portfolio of Houston turnkey properties. These are “Cash-Flow Rental Properties” located in some of the best neighborhoods of Houston.
Not just limited to Houston or Texas but you can also invest in some of the best real estate markets in the United States. All you have to do is fill up this form and schedule a consultation at your convenience. We’re standing by to help you take the guesswork out of real estate investing. By researching and structuring complete Houston turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.
Is It The Right Time To Invest In Real Estate? – The national homeownership rate is on the decline for the first time since 2017. As demographics change and baby boomers retire, you’re seeing Millennials who may not be ready to buy houses. In 2018, Millennials made up about 22 percent of the population in the United States. They’re choosing to rent over buying a single-family home or an apartment. Rising home prices and shortage of starter homes have not left Millennials many choices but to delay homeownership. Moreover, it's even harder to take out a mortgage for those who have student loan debt.
Houston | Texas Real Estate Investment Opportunities
Apart from Houston, you can also invest in the housing market of Dallas, TX. If you have decided to invest in Dallas, you can either buy a fixer-upper or you may want to buy a Dallas investment property. This market offers a wide range of turnkey investment properties; you just have to find your tenants to rent out the property.
The El Paso real estate market is another hot market to invest in. El Paso real estate market was ranked at 4th in Trulia’s hottest real estate markets to watch in 2018. El Paso’s strong job growth, affordability, low vacancy rates, and a high population of young households were pivotal in the ranking process. The cost of living in El Paso is lower than the national average, while the cost of housing is well below that of other major metropolitan areas, including Houston and Austin.
The Central, Cielo Vista and Mesa Hills areas offer more affordable rental properties for sale, while neighborhoods in the northwestern and eastern parts of the metro area have some of the more expensive housing inventory. The amount residents spend on everyday expenses, such as food and transportation, is slightly less than what the average American pays.
The next one is the San Antonio real estate market. The median home value in San Antonio is $167,600. San Antonio home values have gone up 8.0% over the past year and Zillow predicts they will rise 2.5% within the next year. For those who want to invest in rental real estate, the San Antonio real estate market is an ideal location because of the outsized military presence.
Fort Sam Houston is located inside the city limits. Lackland Air Force Base, Randolph Air Force Base, Camp Bullis, and Camp Stanley are located in the immediate vicinity. This means that there is a large population that will almost always rent because they don’t know where they’ll be sent on their next assignment. San Antonio has a dearth of affordable housing because demand is so much greater than the supply.
This has created a large number of renters who need to pay quite a bit to rent apartments or single-family homes. We know there is a lack of housing relative to demand when a balanced market has a 6 month home inventory and San Antonio has only a two-month inventory.
The Austin housing market is one hot place to invest in Texas. It isn’t the largest in the state of Texas, but there are several reasons to consider buying real estate in this city. The Austin real estate market has gained a lot of steam, with home values almost doubling since 2010. The Austin real estate market isn’t as big as Dallas, San Antonio or Houston.
One of the long-term strengths of Austin is its diverse economy. The Austin real estate market dipped after the layoffs of the Dot-Com boom. They decided to solve the problem by encouraging medical and biotech employers to relocate to the area, too. As of this writing, there are 85 biotech and pharmaceutical companies in Austin.
Let us know which real estate markets you consider best for real estate investing!
Please do not make any real estate or financial decisions based solely on the information found within this article. Some of 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. This article aimed to educate investors who are keen to invest in the Houston real estate. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend doing your research and take the help of a real estate investment counselor.
REFERENCES:
Market Data, Trends, and Forecasts
https://www.har.com/content/mls
https://www.zillow.com/houston-tx/home-values
https://www.neighborhoodscout.com/tx/houston/real-estate
https://www.littlebighomes.com/real-estate-houston.html
https://www.realtor.com/realestateandhomes-search/Houston_TX/overview
Rental Statistics
https://www.rentcafe.com/average-rent-market-trends/us/tx/houston/
https://www.rentjungle.com/average-rent-in-houston-rent-trends/
Foreclosures
https://www.realtytrac.com/statsandtrends/foreclosuretrends/tx/harris-county/houston
Downtown Houston
https://www.downtownhouston.org/development
Houston After Hurricane Harvey
https://www.houstonproperties.com/hurricane-harvey-impact-houston-realestate
https://www.bizjournals.com/houston/news/2017/10/11/following-harvey-houston-sees-home-sales-rebound.html
http://www.chron.com/business/real-estate/article/Houston-real-estate-market-continues-post-Harvey-12341532.php
https://www.npr.org/2017/11/08/562903267/some-real-estate-investors-eager-to-buy-houston-homes-damaged-by-flooding
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