Top Locations 2019 Houston Housing Market Predictions: What You Need to Know by Heba Baker November 30, 2018February 12, 2019 by Heba Baker November 30, 2018February 12, 2019 What’s it going to be like for the Houston housing market next year? Hot or cold? Continue reading to find out what to expect for 2019. It seems that Houston is climbing back up the list of the top markets to watch in the US housing market 2019. According to the “Emerging Trends in Real Estate Report 2019,” the Houston housing market is performing a lot better than it was last year. Claiming the 37th spot (out of 79) on the “Markets to Watch” list, Houston is doing significantly well compared to its spot on the 2018 list (60 out of 79). It’s not only the Houston housing market doing well; many Texan cities ranked in the top 20. With Dallas-Fort Worth, Austin, and San Antonio at the top of the list, the Texas real estate market is looking strong for 2019. Still, Houston is a contender for real estate investing. Related: The 2019 US Housing Market: A Seller’s Market or Buyer’s Market? What to Know About the Houston Housing Market Going back to some important real estate market trends for the Houston housing market, the report also scored markets on investment prospects. Houston scored best in the industrial category, which was followed by multifamily, housing, retail, hotels and lastly offices. The report also cited some relevant factors boosting the Houston housing market for 2019: Higher than average population growth rate In-migration Percentage of younger residents Labor force participation rates Gross metropolitan product per capita Business startup activity Above average investor demand Now, we’ve already mentioned multiple great points about the Houston housing market, but let’s circle back to real estate investment. How will Houston investment properties actually perform in the 2019 real estate market? Mashvisor’s investment property calculator has summarized data on the key return on investment metrics for rental properties. If you’re a Houston real estate investor (or want to be), check out these numbers. Learn more about our product. Houston Housing Market 2019- Real Estate Data First, let’s see how Houston rental properties are performing throughout the city. Houston: City-Level Data Median Property Price: $410,143 Price per Square Foot: $171 Average Days on Market: 81 Price to Rent Ratio: 17.21 Monthly Traditional Rental Income: $1,986 Traditional Cash on Cash Return: 1.59% Traditional Cap Rate: 1.59% Monthly Airbnb Rental Income: $2,139 Airbnb Cash on Cash Return: 0.54% Airbnb Cap Rate: 0.54% Considering low-cost and luxury properties are on the spectrum of the Houston housing market, the median property price isn’t too high. You can see just how hot Houston real estate is by the low days on market. This is great news for sellers. Buyers and rental property owners can take advantage of the price-to-rent ratio, which tells us that it’s cheaper for Houston residents to rent rather than own a home. The average ROI metrics (cash on cash return and cap rate) aren’t as high as some investors would like, but it’s important to remember that these are average returns. So you can definitely find neighborhoods that perform at higher rates than the city-level, especially when it comes to Airbnb Houston rentals. To give you some direction on where to start searching for investment properties, here are the best neighborhoods in Houston. Greater Fifth Ward Median Property Price: $300,960 Price per Square Foot: $180 Average Days on Market: 247 Price to Rent Ratio: 21.38 Monthly Traditional Rental Income: $1,833 Traditional Cash on Cash Return: 2.47% Traditional Cap Rate: 2.47% Monthly Airbnb Rental Income: $1,833 Airbnb Cash on Cash Return: 7.33% Airbnb Cap Rate: 7.33% Recommended Rental Strategy: Airbnb Rentals Best feature of this neighborhood is the high returns for Airbnb rentals. Second Ward Median Property Price: $264,900 Price per Square Foot: $199 Average Days on Market: 34 Price to Rent Ratio: 8.22 Monthly Traditional Rental Income: $2,685 Traditional Cash on Cash Return: 5.86% Traditional Cap Rate: 5.86% Monthly Airbnb Rental Income: $2,068 Airbnb Cash on Cash Return: 2.42% Airbnb Cap Rate: 2.42% Recommended Rental Strategy: Traditional Rentals Best feature of this neighborhood is the high monthly traditional rental income. Related: Real Estate Investing for Beginners: A Guide to Neighborhood Analysis Astrodome Area Median Property Price: $169,398 Price per Square Foot: $141 Average Days on Market: 32 Price to Rent Ratio: 9.23 Monthly Traditional Rental Income: $1,529 Traditional Cash on Cash Return: 3.42% Traditional Cap Rate: 3.42% Monthly Airbnb Rental Income: $1,998 Airbnb Cash on Cash Return: 4.56% Airbnb Cap Rate: 4.56% Recommended Rental Strategy: Airbnb Rentals Best feature of this neighborhood is the low median property price. Greater Third Ward Median Property Price: $240,308 Price per Square Foot: $152 Average Days on Market: 153 Price to Rent Ratio: 11.36 Monthly Traditional Rental Income: $1,762 Traditional Cash on Cash Return: 3.75% Traditional Cap Rate: 3.75% Monthly Airbnb Rental Income: $2,064 Airbnb Cash on Cash Return: 3.71% Airbnb Cap Rate: 3.71% Recommended Rental Strategy: Both Best feature of this neighborhood is the strong performance of both rental strategies. To start your search for investment properties in the Houston housing market, click here. Note: Always check regulations on short-term rentals in any market before investing. Related: Airbnb Regulations 2018 – Invest in These Cities Where Airbnb Is Legal Final Words on the Houston Housing Market 2019 The Houston real estate market is steadily making its way back to the top. It’s definitely a market you want to enter. Homes sales are increasing in the Houston housing market, and it doesn’t look like they’re slowing down any time soon. Investors are closing deals on houses as fast as they can. There are low zoning barriers to entry, low cost of living, strong job growth, and strong returns. Do you want to invest in Houston real estate? Make sure you’re landing the best deals on the best investment properties. Sign up for Mashvisor and get instant data analytics on any city and neighborhood of your choosing. Use our Property Finder tool and heatmap tool to find the top performing properties in any market. Mashvisor is the ultimate one-stop shop for any real estate investor. If you want to make the best out of the investment opportunity in the Houston housing market, start out your 14-day free trial with Mashvisor now. Start Your Investment Property Search! START FREE TRIAL AirbnbHouston TXTexasTraditional 0 FacebookTwitterGoogle +PinterestLinkedin Heba Baker Heba is Content Writer at Mashvisor with a BA in Business Administration. Most of all, she enjoys writing about the constantly changing markets in the US real estate industry. If not writing, Heba is exploring and learning. Previous Post Lead Qualification: Signs a Property Buyer/Seller Isn’t Serious Next Post 21 Best Opportunity Zones to Invest in Real Estate in the US Related Posts Top 10 Cities for Owning Investment Properties – US Housing Market 2018 Airbnb Fort Lauderdale: Why and Where to Invest in 2022 Best International Cities For Airbnb Occupancy Rate Why Investing in Daytona Beach Real Estate Is Smart Los Angeles Real Estate Market 2018 and Long Term Rental Properties: What You Need to Know 10 Best Cities for House Hacking in 2021 Texas Real Estate Market 2018 Steals 7/15 Spots in New Study for Top Markets 12 Best Places to Invest in Real Estate in Florida in 2021 Here’s How the Sacramento Housing Market Is Doing Now What Are the Best States to Buy Real Estate in 2019? Denver Rental Market 2019: Top 5 Trends Fort Worth Real Estate Market 2019: Why You Need to Invest Here Leave a Comment Cancel Reply Save my name, email, and website in this browser for the next time I comment.