Top Locations Houston Housing Market 2019: 5 Current Trends You Need to Know by Heba Baker August 4, 2019August 4, 2019 by Heba Baker August 4, 2019August 4, 2019 A stable housing market is all real estate investors look for these days. And according to the following current real estate market trends for 2019, the Houston housing market seems to be a prime investment location: 5 Houston Real Estate Market Trends for 2019 1) Appreciation Rates Signify a Healthy Market Taking a look at property value growth in the Houston housing market, we can notice some very strong real estate appreciation rates. Appreciation differs amongst different property types and different levels of Houston home prices. The highest value gain is apparent in condos priced in the $100k-$250k range. This category of investment property has a 10-year appreciation rate of 37 percent. Following it is single-family homes in the luxury market (priced $1 million and over) with a 10-year appreciation rate of 31 percent. Houston real estate investments are strong because not only did the property appreciate impressively, the land did as well. The highest gain in land value is in the Washington East/ Sabine neighborhood, where the 10-year appreciation rate is 160 percent, followed by Cottage Grove (133 percent), and Greater Heights (100 percent). Related: US Real Estate Appreciation Is Forecast to Remain Steady at +3.7% 2) House Price Trends Vary Across the Houston Housing Market Buying a house in Houston is definitely something you want to consider as a real estate investor in 2019. However, to get the best deal, you have to know where to purchase Houston investment properties based on your budget. On average, buyers closed on Houston houses for sale at 2 percent below the asking price. Houston housing prices differ based on the competitiveness in each neighborhood. Some areas witness double-digit increases in median home price, whereas others have price drops. Median home prices in Memorial Close went up 24 percent in the past year, Garden Oaks followed with a 23 percent increase, and River Oaks with a 14 percent increase. Some areas with median home price declines were Meyerland (11 percent down), Memorial West (10 percent drop), Bellaire (7 percent down), and Energy Corridor (6 percent down). Related: House Price Trends to Expect in the US Real Estate Market 2019 3) Inventory Levels Are Up, Making Houston a Buyer’s Market What followed Hurricane Harvey was a blow to the residential inventory of the Houston housing market. It resulted in $29 billion worth of damage, having flooded a total of 114,000 homes. Real estate inventory was down by 6.7 percent in the Houston housing market. Fast forward to 2019, and we’re seeing a speedy recovery for the market. Houston real estate investors can confidently start investing as projected overall inventory growth is 2.8 percent for this year. As the housing stock in Houston continues to go up, and buyers have more options to choose from, Houston homes for sale are staying up on the market longer. While different price points are scattered across the different parts of the Houston housing market, the average Houston seller is accepting deals below the list price. All of these things indicate a buyer’s market in Houston. As housing markets continue to adjust themselves across the nation, these trends are normal. Typically, a seller’s market is where competition is hottest. While the Houston housing market is softening, it still remains considerably strong with a Redfin competitive score of 65. 4) A Strong Rental Market Citywide The rental market in Houston started approaching an all-time high in 2017 after the hurricane as victims were looking for rental properties to stay in. Currently, NeighborhoodScout reports that almost 57% of the population resides in rentals rather than in their own homes. To give you more information on how rental properties are performing in the Houston housing market 2019, it’s time to list some of Mashvisor’s data. Our rental property calculator analyzed Houston real estate investment performance and gave us these stats: Median Property Price: $386,668 Price per Square Foot: $164 Average Days on Market: 63 Monthly Traditional Rental Income: $1,854 Traditional Cash on Cash Return: 1.6% Monthly Airbnb Rental Income: $2,419 Airbnb Cash on Cash Return: 1.7% Airbnb Occupancy Rate: 52% As you can see, the strong rental demand in Houston means owning a rental property here will be profitable. Do you have questions about Mashvisor? Read our FAQs and learn about our tools. 5) A Strong Job Market Supports Real Estate Investment Houston has got one of the strongest economies in the nation, and this hasn’t gone unnoticed by real estate investors searching for a strong market. It’s home to 49 Fortune 1000 companies and is progressing and developing in numerous industries. While oil and gas exports have been a staple in the Houston market, other industries are booming in 2019. A projected 71,000 new jobs are expected to come from the Houston metro area this year, with healthcare and construction holding the biggest share (9,000 and 8,900 respectively). A strong job market will keep drawing people into Houston. This will continue supporting the city’s strong real estate market. Related: Job Growth and Its Effect on the US Housing Market Where to Invest: The Best Neighborhoods in Houston For the best chances at a successful real estate investment, you should invest in the top-performing neighborhoods for Houston rental property. The following are the best places to invest in the Houston housing market, according to Mashvisor’s data. Where to Buy Traditional Rentals in the Houston Housing Market Fondren Gardens Median Property Price: $121,551 Price per Square Foot: $69 Monthly Traditional Rental Income: $1,321 Traditional Cash on Cash Return: 5.3% Settegast Median Property Price: $158,450 Price per Square Foot: $115 Monthly Traditional Rental Income: $1,320 Traditional Cash on Cash Return: 4.5% Greater Third Ward Median Property Price: $208,500 Price per Square Foot: $142 Monthly Traditional Rental Income: $1,811 Traditional Cash on Cash Return: 3.8% Where to Buy Airbnb Rentals in the Houston Housing Market Pecan Park Median Property Price: $161,119 Price per Square Foot: $104 Monthly Airbnb Rental Income: $3,186 Airbnb Cash on Cash Return: 12.8% Airbnb Occupancy Rate: 54% Edgebrook Area Median Property Price: $155,038 Price per Square Foot: $97 Monthly Airbnb Rental Income: $3,263 Airbnb Cash on Cash Return: 11.8% Airbnb Occupancy Rate: 76% Westbury Median Property Price: $234,249 Price per Square Foot: $125 Monthly Airbnb Rental Income: $2,654 Airbnb Cash on Cash Return: 6.4% Airbnb Occupancy Rate: 57% Find a Profitable Airbnb Investment Property The Bottom Line The Houston real estate market forecast for 2019: it will continue to be a great investment opportunity in the Texas housing market. With a population of about 2.3 million people, one of the strongest economies in the nation, and a strong rental market, the Houston housing market is looking really good for buyers. Do you have a free Mashvisor account? Use our Property Finder to find lucrative investment properties that match your criteria in a matter of minutes! Start Your Investment Property Search! START FREE TRIAL AirbnbBuyers MarketHouston TXNeighborhoodTraditional 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 Is Airbnb Worth It as a Real Estate Investment Strategy? Next Post 6 Benefits of Foreclosure Investing Related Posts Should You Invest in the Scottsdale Real Estate Market in 2019? 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