It's no more an unknown thing for a savvy real estate investor to know that Houston, Texas is a beautiful place to live and raise a family. Houston, with a fascinating history, is considered to be one of the most desirable locations to invest in real estate in the country and the whole world at large.
The Houston real estate market is becoming one of the favorite destinations for those looking for a beautiful home. In case you are thinking about investing in Houston real estate, as an investor, it is only logical to consider the booming cities in the country.
As a someone who is looking to invest in real estate in 2020, I will advise you to consider investing in the Houston real estate market because this city is one of the good examples of a booming housing market. It provides healthy and secured real estate profile for local and even foreign investors.
Houston has everything: the people, the diversity, the business climate, being world renowned in energy, medicine, space, and manufacturing. So, if you are of one the investors looking to invest in the Houston housing market, then you are on the right track as a savvy investor. The Houston housing market offers plenty of choices and also amazing prices for properties and it is a good time to invest in Houston.
Why Should You Invest In Houston Real Estate?
7 Reasons To Invest In The Houston Real Estate Market
In this article, we will look at the top 7 reasons that make Houston a great place for real estate investment.
1. High Population
Houston, Texas has a population of over 2.2 million people, and it is the largest city in the state of Texas, and also it is the 4th most populous city in America. State demographers estimate that Texas’ population will double to more than 54 million people by 2050 and a lot of it will be concentrated in the big metropolises including Houston.
Houston is a popular city in the US with thriving business culture, fashion, sport, research, technology, education and many other things. Houston is also the city with the fourth tallest skyline in the US. All these amazing factors make Houston to accommodate millions of tourists and visitors every year and which simultaneously allow Houston real estate market to boom. This is the first reason to invest in the Houston real estate market.
2. Variety of Investment Properties To Invest In
Investing in the Houston real estate is a perfect idea because there is a lot of variety of investment properties available to investors. Houston has extremely good business infrastructure and residential housing costs provide an operating cost advantage to prospective investors. There are many acres of land available, and there is a lot of movement going on in the real estate sector in Houston which makes it an ideal real estate market where investors can easily find old and new properties in the market.
Whatever type of real estate investing you want to do, you can easily find a lot of investment properties in the Houston housing market. Do you want to invest in commercial properties, new home buildings, ancient home buildings? Whatever you want to invest in, investing in Houston real estate will take you there. This is another good reason to invest in the Houston real estate market.
Click on the link to check our inventory of fully renovated Houston Investment Properties which are 5%-20% below current fair market value.
3. Houston Real Estate Market Is Still Developing
Houston has a lot of room to grow and develop unlike the fully built city like New York, San Francisco, Washington, etc. Houston has a low-density sprawl which is fantastic, and this means that there are still spaces within the city for the construction of residential housing. Many of inner-city neighborhoods still have spaces either abandoned or vacant, and these land spaces can be used for building houses. This is the third fascinating reason to invest in the Houston housing market.
4. Booming Trade
Another reason why investors need to invest in the Houston housing market is that of the booming and expanding trade. One of the reasons why people migrate to a certain place is international trade and ease of business, and Houston has the largest US port regarding total cargo tonnage handled. Even for the waterborne tonnage, makes it the busiest port in the US when it comes to foreign trade.
The port in Houston employs lots of workers, and this port also attracts numerous business people, travelers from around the world every year and all these people need a place to stay in either temporary or permanent housing. This is where real estate investors come in! You can easily rent out a property or even sell to the foreigners who are always in Houston for business. What more you need to think of before deciding to invest in Houston?
5. Job Growth
Big companies want to have their centers set up in Houston. Recently Amazon chose Houston to call home. This decision has the potential to bring an entirely new industry to Space City. A one million-square-foot distribution center has been built near the intersection of Highway 90 and Woods Road, just off I-10 West.
The center is said to eventually provide 1,000 new jobs in the area. This will give a great boost to the Houston's economy and real estate sector as well. High job growth is another one of top 6 reasons to invest in Houston real estate market.
The Houston region is one of the most important industrial bases in the world and ranks No. 2 in manufacturing GDP in the U.S. It has the largest medical complex in the world, the Texas Medical Center, which provides clinical health care, research and education at its 58 institutions. Houston has more than 1,760 life sciences and biotechnology companies, cutting-edge hospitals, health facilities and research institutions.
Houston is the U.S. energy headquarters and a world center for virtually every segment of the oil and gas industry from exploration and production to marketing and technology. Houston is home to 6,400 manufacturers who employ more than 240,000 skilled workers and produce $80 billion in goods annually. All of the above makes it an exciting reason to invest in the Houston housing market.
The above data was taken from Houston.org. You can visit their site for more info information on Houston's top industries.
Houston is a city that is rich in good schools, universities and colleges. The Houston Independent School District, the biggest in the Houston region, serves 213 square miles with 288 schools, 13,000 educators and in excess of 210,000 students. It is one of Houston's biggest business ventures.
The Greater Houston area has 14 major institutions of higher learning. In 2011, U.S. News & World Report ranked BAYLOR COLLEGE OF MEDICINE as one of the top 25 medical schools for research. University of Houston was chosen as one of the nation's best colleges for undergraduate education by The Princeton Review in 2011.
Where To Invest in The Houston Real Estate Market?
If you are looking to buy real estate in Houston, you should know the best places to invest in. The three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability. Here are the 10 best neighborhoods in Houston to invest in real estate.
1. Kingwood Area, Houston, TX
The top pick is a suburb called Kingwood Area. It is highly populated with more than 83,000 people. Home 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.
2. El Lago, Houston, TX
This suburb is just outside Taylor Lake Village, and is very sparsely populated with fewer than 3,000 residents. Home 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.
3. Clear lake, Houston, TX
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 home prices in this Houston area 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.
4. Addicks Park Ten, Houston, TX
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. Home 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.
5. Taylor Lake Village, Houston, TX
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 home price growth is likely to net you a tidy profit as well.
6. Greatwood, Houston, TX
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,
7. Memorial, Houston, TX
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.
|MEMORIAL REAL ESTATE FACTS|
|Total Homes for Sale:||254|
|Median Home Values Estimate||$511,500|
|Home Value Forecast:||-11%|
8. Lake Houston, Houston, TX
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.
|LAKE HOUSTON REAL ESTATE FACTS|
|Total Homes for Sale:||171|
|Median Home Values Estimate:||$231,600|
|Home Value Forecast:||0.5%|
9. New Territory, Houston, TX
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:
10. Cinco Ranch, Houston, TX
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 higher home prices Houston, so as growth continues there are profits to be made.
Let Us Help You In Buying Your First Investment Property in Houston
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 area, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing and interest rates.
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Remember, caveat emptor still applies when buying a property anywhere. The aim of this article was to educate investors who are keen to invest in Houston real estate in 2020. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor. 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.