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Houston is a major metropolitan city in Southeast Texas with a population of over 2.3 million people. This makes Houston the most populous city in the state of Texas and the 4th most populous one in the US. The city is expected to experience population growth that is twice the national rate thanks to the strong net migration. This, along with the fact that the percentage of the population under the age of 44 is significantly high, boosts economic activity in Houston. And with around 56.8% of residents living in rental properties rather than owning their own homes (according to NeighborhoodScout), investing in a Houston rental property is a great option.

Houston enjoys a diverse economy and strong job growth. Home to over 5,000 energy firms, Houston is regarded as the US energy headquarters and the world capital of the oil and gas industry. Due to its central location within the US and the Americas, Houston is an important industrial base with access to global markets and ranks #2 in manufacturing GDP in the US. More than 230,000 industrial workers work in specialties such as fabricated metal, machinery, and chemical manufacturing. The aerospace industry is also an important part of Houston’s economy since the Johnson Space Center, NASA’s largest research and development facility, is located in the city. The Texas Medical Center in Houston is the world’s largest medical complex, providing clinical health care, research, and education at its 61 institutions. Other major industries include transportation and logistics, digital technology, finance, higher education, media, and retail. A total of 21 Fortune 500 companies are headquartered in the Houston region, ranking fourth among metro areas in Fortune 500 headquarters. 

Tourism is vital to the local economy. The tourism and hospitality industry employs about 88,000 workers in the city and 140,000 across the metropolitan area. A convention hotspot, Houston has also established itself as an attractive leisure destination in recent years. It is home to many cultural institutions and exhibits, attracting more than 7 million visitors annually to the Houston Museum District. A total of 22.3 million people visited Houston in 2018, including both leisure and business travelers.  This provides ample real estate investment opportunities in the Houston short-term rental market. 

The Houston real estate market was named one of the most important US Markets to Watch by PWC in its annual Emerging Trends in Real Estate: United States and Canada 2019 report. Judging by investment prospects by sector, Houston scored above average in nearly every category in the report. The city scored the best in the industrial category, followed by multifamily real estate and then housing. However, the report warns that disruptions in international trade due to a strong dollar and the potential impact of a trade war could disrupt demand for industrial space in the city of Houston.

Houston Realtors and Real Estate Agents


Houston  Real Estate Investment Performance
Facts and Market Trends in Houston
Homes For Sale1,260
Airbnb Properties1,376
Rental Properties4,946
Traditional Vacancy rate9.90%
Airbnb Occupancy Rate52.15%
Mashmeter66.87%
Median Price$310,000
Median Rent Price$1,913
Price/sqft$186
Median Days on Market81
Price to Rent Ratio18.8
Average Cap Rate
Airbnb2.05%
Traditional2.52%
Average Rental Income
Airbnb$2,409
Traditional$1,622
 
Median Household Income$63,802
Population2,325,502
Transportation in Houston
49 / 100
Car-Dependent
37 / 100
Some Transit
48 / 100
Somewhat Bikeable
Houston  Rent Prices
RENTAL STRATEGY STUDIOS 1 ROOM 2 ROOMS 3 ROOMS 4 ROOMS
Airbnb$898$1,016$1,454$2,525$4,177
Traditional$941$875$1,170$1,635$2,032
Houston, TX - Homes for Sale - Newly Listed
$259,900
MLS 86868704
10425 Gwen Street
Houston, TX 77093
Eastex - Jensen Area
Single Family Residential
3 beds3 baths1,695 sq.ft.
CAP RATE
Trad. 2.84%Airbnb 2.68%
$299,900
MLS 83639383
11022 Hillcroft Street
Houston, TX 77096
Westbury
Single Family Residential
3 beds2 baths1,602 sq.ft.
CAP RATE
Trad. 1.98%Airbnb 5.25%
$254,810
MLS 16211604
6025 Wakanda Lane
Houston, TX 77048
Minnetex
Single Family Residential
3 beds2 baths1,585 sq.ft.
CAP RATE
Trad. 2.23%Airbnb 4.59%
$649,000
MLS 4424551
307 Northwood Street
Houston, TX 77009
Northside Village
Single Family Residential
3 beds2 baths1,627 sq.ft.
CAP RATE
Trad. -0.60%Airbnb 0.56%
Top Performing Houston Properties
$79,000
MLS 25434003
3130 Walnut Bend Lane #323
Houston, TX 77042
Westchase
Condo/Coop
1 beds1 baths873 sq.ft.
CAP RATE
Trad. 4.31%Airbnb 7.93%
$304,999
MLS 70303033
4704 Hershe Street
Houston, TX 77020
Greater Fifth Ward
Single Family Residential
3 beds3 baths1,964 sq.ft.
CAP RATE
Trad. 3.95%Airbnb 7.85%
$285,000
MLS 84788365
2012 Holman Street
Houston, TX 77004
Midtown
Townhouse
3 beds4 baths1,924 sq.ft.
CAP RATE
Trad. 5.59%Airbnb 7.80%
$330,132
MLS 51617107
2951 Laurel Mill Way
Houston, TX 77080
Spring Branch North
Single Family Residential
4 beds3 baths2,315 sq.ft.
CAP RATE
Trad. 2.87%Airbnb 7.79%
Recently Sold Homes in Houston, TX
$500,000
MLS 7394045
2415 Mcgowen Street #1
Houston, TX 77004
Greater Third Ward
Multi Family
2 beds1 baths2,688 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
$219,000
MLS 76231655
4309 Hull Street
Houston, TX 77021
Ost - South Union
Multi Family
1 beds1 baths1,080 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
$1,100,000
MLS 38338737
5427 N Shepherd Drive
Houston, TX 77091
Independence Heights
Multi Family
4 beds2 baths6,675 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
$499,000
MLS 76034139
2318 Isabella Street
Houston, TX 77004
Greater Third Ward
Multi Family
3 beds1 baths2,476 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
Property Value Changes and Real Estate Appreciation in the Houston Housing Market

The Houston real estate market has witnessed a strong real estate appreciation in recent years. According to NeighborhoodScout, since the beginning of 2000, Houston property values have increased by 113%, which is an average annual appreciation rate of 4.01%. Zillow reported a 4.5% increase in home values over the past year, meaning Houston homes continue to enjoy appreciation. 


The Houston housing market is currently a buyer’s market, meaning there are many more available houses for sale than buyers seeking to purchase properties. This is the ideal time for prospective investors to buy a Houston real estate property since they have more choices, and home prices tend to be lower because of the increased supply.

Houston, TX Top Multi Family Homes
$123,000
MLS 12190713
3516 Orange Street
Houston, TX 77020
Greater Fifth Ward
Multi Family
1 beds2 baths1,040 sq.ft.
CAP RATE
Trad. 7.98%Airbnb N/A
$250,000
MLS 81905764
7921 Brays Street
Houston, TX 77012
Magnolia Park
Multi Family
2 beds1 baths1,290 sq.ft.
CAP RATE
Trad. 3.30%Airbnb N/A
$300,000
MLS 56906368
1412 E 35th Street
Houston, TX 77022
Independence Heights
Multi Family
2 beds1 baths1,584 sq.ft.
CAP RATE
Trad. 3.09%Airbnb N/A
$300,000
MLS 24786269
6729 Avenue Q #B
Houston, TX 77011
Magnolia Park
Multi Family
1 beds1 baths2,200 sq.ft.
CAP RATE
Trad. 1.89%Airbnb N/A
Homes Below Median Price in the Houston, TX Real Estate Market
$79,000
MLS 25434003
3130 Walnut Bend Lane #323
Houston, TX 77042
Westchase
Condo/Coop
1 beds1 baths873 sq.ft.
CAP RATE
Trad. 4.31%Airbnb 7.93%
$304,999
MLS 70303033
4704 Hershe Street
Houston, TX 77020
Greater Fifth Ward
Single Family Residential
3 beds3 baths1,964 sq.ft.
CAP RATE
Trad. 3.95%Airbnb 7.85%
$285,000
MLS 84788365
2012 Holman Street
Houston, TX 77004
Midtown
Townhouse
3 beds4 baths1,924 sq.ft.
CAP RATE
Trad. 5.59%Airbnb 7.80%
$330,132
MLS 51617107
2951 Laurel Mill Way
Houston, TX 77080
Spring Branch North
Single Family Residential
4 beds3 baths2,315 sq.ft.
CAP RATE
Trad. 2.87%Airbnb 7.79%
Houston Airbnb Growth and Regulations

Considering the importance of tourism in Houston, it comes as no surprise that the Houston Airbnb business has witnessed major growth in recent years. In 2018, a total of 512,000 Airbnb guests stayed at Greater Houston short-term rentals, bringing a total revenue of $72 million to the local Airbnb hosts. This means a Houston Airbnb host typically earns about $5,100 annually. 


Despite increasing Airbnb legal issues in other major real estate markets across the US, Airbnb rental properties remain fully legal in the Houston housing market. The city has not enforced any laws to regulate the use of short-term rentals. Nevertheless, Houston Airbnb hosts are expected to pay a city hotel occupancy tax of 7% in addition to a 6% state hotel tax.

Houston, TX Top Airbnb Homes
$55 per night
$42 per night
$66 per night
$53 per night
Houston, TX Homes for Rent
$1,400
MLS 39129799
575 Woodhurst Street
Houston, TX
Northshore
Single Family
3 beds2 baths1,349 sq.ft.
$1,600
MLS 91728608
16223 Grassy Creek Drive
Houston, TX
Eldridge - West Oaks
Single Family
2 beds2 baths1,568 sq.ft.
$1,695
MLS 55652427
11419 Sagegrove Lane
Houston, TX
South Belt - Ellington
Single Family
4 beds2 baths1,959 sq.ft.
$2,580
MLS 87000502
10311 Harmon Smith Drive
Houston, TX
South Main
Single Family
3 beds3 baths1,683 sq.ft.
Houston, TX Open Houses
Open 2 PM to 4 PM
$599,000
MLS 30046446
6726 Saxton Manor Street
Houston, TX 77055
Spring Branch East
Single Family Residential
3 beds4 baths3,155 sq.ft.
CAP RATE
Trad. -0.77%Airbnb -1.38%
Open 1 PM to 3 PM
$539,990
MLS 48351763
1322 Beachton Street
Houston, TX 77007
Downtown
Single Family Residential
3 beds4 baths2,884 sq.ft.
CAP RATE
Trad. 1.91%Airbnb 1.96%
Open 1 PM to 3 PM
$435,000
MLS 62455174
337 W 26th Street
Houston, TX 77008
Greater Heights
Single Family Residential
3 beds3 baths1,978 sq.ft.
CAP RATE
Trad. 2.79%Airbnb 1.35%
Open 2 PM to 4 PM
$289,999
MLS 85202213
2218 Kinbrook Drive
Houston, TX 77077
Briarforest Area
Single Family Residential
3 beds2 baths1,980 sq.ft.
CAP RATE
Trad. 2.20%Airbnb 3.61%
Best Houston Neighborhoods for Buying Investment Property
68%
Mashmeter
property price
$350,000
Median
cap rate
6.41%
Traditional
10.53%
Airbnb
rental income
$1,870
Traditional
$3,071
Airbnb
homes for sale
14
occupancy rate
47%
Airbnb
68%
Mashmeter
property price
$537,495
Median
cap rate
5.46%
Traditional
8.25%
Airbnb
rental income
$2,443
Traditional
$3,695
Airbnb
homes for sale
16
occupancy rate
49%
Airbnb
82%
Mashmeter
property price
$365,000
Median
cap rate
7.37%
Traditional
15.41%
Airbnb
rental income
$2,240
Traditional
$4,688
Airbnb
homes for sale
21
occupancy rate
46%
Airbnb
69%
Mashmeter
property price
$572,000
Median
cap rate
5.98%
Traditional
6.19%
Airbnb
rental income
$2,848
Traditional
$2,952
Airbnb
homes for sale
42
occupancy rate
51%
Airbnb
67%
Mashmeter
property price
$431,500
Median
cap rate
7.02%
Traditional
6.69%
Airbnb
rental income
$2,523
Traditional
$2,407
Airbnb
homes for sale
32
occupancy rate
45%
Airbnb