About the Houston Housing Market
Houston is the largest city in Texas and fourth-largest in the United States. With a population of over 2.3 million, it is also home to the largest medical center in the world, NASA’s Mission Control Center and one of the busiest seaports in the U.S. in terms of foreign tonnage.
Houston’s economy is dominated by energy-related businesses, which account for 25% of Houston’s gross metropolitan product (GMP). As such, it has been considered the Energy Capital of the world since oil was first discovered there in 1901. In addition to its core industries, Houston has become known for its diversity—it boasts one of the largest LGBTQ populations in Texas, as well as a strong arts scene that includes local theater groups and museums like The Menil Collection Museum or Rothko Chapel.
Houston’s housing market was a hotbed of activity during the mid-2000s, when investors flocked to the city in search of affordable real estate. And the market has been on the rise since recovering from The Great Recession.
Median Household Income: $70,893
Metro Population: 7.2 Million
11-Year Population Growth: 21.18%
Median Home Price: $299,400
Median Rent Per Month: $1,573 (0.53% rent-to-value ratio)
1-Year Equity Growth: 16%
8-Year Equity Growth : 74%
1-Year Rent Growth: 8%
8-Year Rent Growth (January 2014 – December 2022): 19.5%
Job Growth: +193,600 CES jobs created over the last year
1-Year Job Growth Rate: 6.26% (63% higher than the national average)
Unemployment Rate: 4.4% (19% higher than the national average)
Tenant Laws: Landlord-Friendly
What to Like
Affordable cost of living
Strong job market
Excellent medical care
Diverse culture and food
What to Watch Out For
Hurricanes / humid weather
Lack of public transport
Higher crime in some areas
Traffic congestion
– Houston is a major economic hub, with a diverse range of industries including energy, healthcare, aerospace, and technology. The city is home to the largest medical center in the world, as well as the headquarters of many Fortune 500 companies. Houston has also been ranked as one of the best cities for job growth and is home to a thriving startup scene.
– Houston’s population has grown at an average annual rate of 1.94% since 2010. This has led to a demand for homes that still outweighs supply.
– The median price of homes in Houston is $299,400, which is 12.8% less than the national average home price.
– Houston’s rent is $1,573 per month, which is over 20% lower than the national median rent of $1,973 per month. This puts Houston’s average rent to value ratio at 0.53%, almost 8% lower than the national average of 0.57%.
– Houston has become a hotbed for job seekers, with 193,600 new jobs created between July 2021 and July 2022—a 6.26% increase in jobs. This is 63% more than the national average.
Steady population increase
Houston is a hotbed of opportunity. The city’s population has grown steadily over the past few decades, with a 7.5% increase between 2010 and 2020. It’s got a strong job market and is experiencing incredible population growth. Houston is the fifth-fastest growing metropolitan area in the United States, with an 11-year population growth rate that is 190.5% higher than the national average.
Infrastructure growth
Houston has invested heavily in its infrastructure in recent years, with major projects including the expansion of the city’s light rail system, the redevelopment of downtown, and the construction of new sports and entertainment venues. The city is also home to two major airports, making it a major transportation hub.
Steady home price appreciation
The Houston real estate market has had an average appreciation rate of 8.24% per year for the last 8 years, making it one of the safest places to invest in real estate in the US right now. From 2014 to 2022, Houston home prices increased 74.05% at a yearly rate of 8.24%. In the same period, rent prices in Houston increased 19.54% at a yearly rate of 2.58%.
Purchasing Property in Houston
Houston’s real estate market has also been booming, with both commercial and residential properties seeing strong growth. According to the Houston Association of Realtors, the median price of a single-family home in Houston increased by over 40% between 2010 and 2020.
Houston has a lower cost of living than many other major cities in the United States. This is especially true when it comes to housing, which is much more affordable in Houston than in cities like New York, Los Angeles, or San Francisco.
The 10 Houston neighborhoods where home values have risen the most since 2000 are Lawndale Wayside South, Brittmoore Rd, Gulfton South, Woodland Heights, Greater Heights SouthEast, Greater Heights East, Downtown SouthEast, Near Northside, Second Ward East and Greenway Upper Kirby Area West.
Houston, Texas
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