Author
Rashidah Ali
Berkshire Hathaway HomeServices Premier Properties
Licensed Real Estate Salesperson
rashidah.ali@preproperties.com
www.berkshirehathawayhs.com/
HOUSTON HOUSING MARKET TRENDS
“Houston has been one of the few bright spots in a year of disappointing and troubling commercial real estate stories. Its status as a real estate investment heavyweight is expected to remain fairly stable in 2021.”
The low cost of living in comparison to the rest of the country, combined with a stable local economy and employment sector, has developed a haven for commercial property investors. In the Houston area, commercial properties, industrial estates, healthcare centers, and residential property or mixed-use residences have proved to be fruitful year after year. According to local brokers, nothing remains on the market for long because buyers are purchasing homes at a rapid pace to take full advantage of low mortgage rates. Record-low mortgage costs and an excess demand for available homes are two main factors why the Houston housing market will continue to thrive in 2021.
ATTRACTIVE REAL ESTATE MARKET.
In just one month, nearly 8,000 single-family homes in Houston changed names, as investors continue to snatch up homes at a phenomenal rate. According to Houstonian Magazine, Houston’s housing stock is at an all-time low. The average number of days a home is on the market has even decreased from 68 to 48.
KEY STATS:
- Single-family home sales have increased 1.2 percent year over year with 6,049 unit sales.
- The number of days on the market (DOM) for single-family homes fell from 68 to 48.
- With 7,464 units sold, total property sales increased by 1.9 percent.
- The total dollar amount increased by 17.3 percent to $2.4 billion.
- Townhome/condominium sales have increased by 4.1 percent, with the average cost increasing by 1.4 percent to $219,326 and the median price increasing by 1.0 percent to $178,700.
ATTRACTIVE RENTERS’ MARKET
Tremendous bidding wars with numerous offers on newly listed homes have become the trend in the Houston real estate market. According to the Houston Chronicle, the housing market’s solid sales behavior combined with fewer properties for sale, is going to drive up single-family home prices.
When families can’t afford to buy, they rent, and that is why Houston’s rental market has become so powerful. In fact, renters contribute to 52% of households in the Houston metropolitan area.
KEY STATS:
- The median rent in Houston for a three-bedroom home is $1,650 per month.
- Year over year, rents in Houston have risen by 8%.
- In Houston, renter-occupied households account for 52% of all occupied housing units in the metropolitan area.
SHOULD YOU CONSIDER INVESTING IN HOUSTON REAL ESTATE?
“If you invest in Houston real estate, you will certainly secure your future.”
Houston is a diverse city with a lot of potential which attracts a wide range of buyers and renters. Due to a consistent rate of appreciation, investing in Houston real estate is definitely a worthwhile investment.
Solid cash flow from Houston investment properties indicates that the investment is financially viable. The city is seeing continual development projects that promise to keep the real estate market high, such as housing units, hotels, commercial buildings, and restaurants.
