Have you ever wondered why thousands and thousands of people continue to choose Houston real estate as their destination? Well, ranked the best city for real estate prospects in 2016 according to Price Waterhouse, Houston is attractive for many reasons. Having a good overall economy accompanied by good housing market has distinguished Houston greatly from others. Whether it is baby boomers, millennials, or middle-aged professionals, the city has been and continues to be a home to many. Current residents rate their experience as very satisfactory. Good educational system, healthcare, and job market explain the level of satisfaction that the majority have reported.
Related: Is It Time to Invest in the Houston Real Estate Market?
Below, we have developed a literary content introducing to you the Houston real estate market. The following points explain why Houston real estate is looking attractive for many. We aspire to give you a better understanding of Houston real estate through this piece of work. We also hope that this article leads you closer to your real estate investment goals. If you are looking to invest in Houston real estate today, we recommend that you do further research. Maybe plan a visit to the city to get a hands-on experience. But first, browse through this article and the others about Houston which Mashvisor ebulliently offers.
Rentals Are on the Rise
Over the past decade, the Houston real estate market has witnessed a strong demand from new individual residents and families. In fact, rental properties, particularly single-family homes, are becoming increasingly popular and in demand. People have been selecting rentals because they give them the flexibility to move whenever they want, while enjoying their own space.
While demand for housing has increased, supply has slowed. The inventory of homes across many states and cities has significantly declined for the past few years. In Houston, for example, the inventory rate has dropped by 25% from that of last year’s. The slowing inventory of homes has, moreover, caused an increase in home prices. This has further made renting more desirable.
The Economy Is Strong and Fast
According to an economist from Realtor.com, the Houston real estate “market has been one of the best housing markets in the country coming out of the recession as its economy has been one of the strongest and fastest growing.” Mr. Smoke further asserts that the market is actually setting new highs in employment and home prices. In fact, Houston has one of the best housing markets with sales moving faster than in any other city. The average number of days that a house is up in the market, for example, is 54 days, which is 2 days less than that of Los Angeles.
The Houston economy continues to be a more resilient economy. Although the city has previously relied heavily on oil in its wealth, it has successfully diversified its economy today. The economy is becoming increasingly strong across the following sectors: medical, biochemical, hospitality, and import/export.
Related: How Does the US Housing Market Forecast Look for the Second Half of 2017?
More Baby Boomers and Professionals Look for Houston Real Estate Rentals
The city has witnessed an increase in the number of baby boomers moving into it and selecting rentals as an option. Maintenance and care (not to neglect costs associated) that owning a property accompanies have diverted retirees to choose rentals. Baby boomers who are soon retiring are choosing to downsize or rent instead so as to efficiently go about their retirement years. Another reason to explain the strong demand for rentals from baby boomers is the excellent facilities and amenities that the city has yet to offer. Citizens are speaking highly of healthcare, retail, and leisure, factors that have contributed to their selection of this city.
Baby boomers have come to constitute a big share of the demand in the Houston real estate market, but so have professionals. Many professionals working in Science, Technology, Engineering and Math (STEM) continue to constitute another chunk of the market. STEM jobholders, who constitute about 5.5% of employment, have come to compete in a market like Houston real estate. The high-paying salaries that these jobs offer enable many to afford Houston and its richest neighborhoods.
Related: Wondering How to Work Out Rental Yield?
Top Neighborhoods
To give you a glimpse of Houston neighborhoods, we have developed a brief summary of the top four neighborhoods in Houston. Whether you are looking for a single-family house or a home rental, you can find it here. Read to explore.
1. Montrose
Montrose is a beautiful neighborhood to walk around. In fact, people refer to it as one of Houston’s most walkable neighborhoods. The area houses excellent restaurants, music bars, fashion boutiques, cafes, and pubs. Because the neighborhood enjoys strong and attractive amenities and services, land prices have been appreciating. People are coming here to invest before prices go higher. One of the best places to invest in Houston real estate, Monstrose remains to welcome more and more inhabitants everyday.
2. River Oaks
According to Forbes, Fortune, and Wall Street Journal, River Oaks ranks among the best places to live in. The neighborhood, moreover, has an excellent educational system, attractive amenities, and ancient and beautiful historic sites. Homes, however, remain priced high with median home price hovering at around $2.5 million. Despite the fact that home prices are high, people continue to purchase real estate properties here. In fact, River Oaks has remained to be one of the top performing neighborhoods in the past decade.
3. Meyer Land
People have come to choose to live in Meyer Land, for it is a more affordable neighborhood than the other aforementioned. Located just outside Loop 610, Meyer Land enjoys a rich history and a diverse society. In fact, today Meyer Land is one of the top neighborhoods in Houston real estate.
4. Cottage Grove
Cottage Grove is also another more affordable option for many. While houses are cheaper than those in neighboring areas, Cottage Grove remains to be a classy and sought-after neighborhood. The neighborhood with its elegance welcomes young professionals who prefer to be in a city-like environment, given how close it is to Downtown and Washington Avenue. If you are looking for a luxurious city-like neighborhood, yet not overly expensive, then we recommend that you look further into Cottage Grove.
Whether living in Cottage Grove, or Meyer Land, Houston remains to be a plausible option for many. Not only are baby boomers coming to settle here, but so are senior professionals and millennials. What the city has to offer from amenities and attractions explains the strong demand for housing. We hope you have grasped an idea of the Houston real estate market and the advantages that follow investing in it.
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