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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 Sale1,400
Airbnb Properties1,299
Rental Properties4,212
Traditional Vacancy rate8.90%
Airbnb Occupancy Rate54.96%
Mashmeter64.66%
Median Price$405,606
Median Rent Price$1,893
Price/sqft$171
Median Days on Market78
Price to Rent Ratio18.3
Average Cap Rate
Airbnb1.86%
Traditional1.61%
Average Rental Income
Airbnb$2,324
Traditional$1,854
 
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$1,405$1,349$1,636$2,105$2,818
Traditional$863$853$1,212$1,608$2,039
Houston, TX - Homes for Sale - Newly Listed
Investment Properties for Sale
$186,700
MLS 18559434
9239 Rentur Drive
Houston, TX 77031
Greater Fondren Southwest
Single Family Residential
3 beds2 baths1,822 sq.ft.
CAP RATE
Trad. 2.15%Airbnb 3.87%
Investment Properties for Sale
$232,900
MLS 96574689
7642 Ashton Drive
Houston, TX 77095
Addicks Park Ten
Single Family Residential
4 beds3 baths2,488 sq.ft.
CAP RATE
Trad. 1.53%Airbnb 2.43%
Investment Properties for Sale
$370,000
MLS 24313589
2504 Rusk Street #106
Houston, TX 77003
Downtown
Townhouse
2 beds3 baths1,577 sq.ft.
CAP RATE
Trad. 0.91%Airbnb 1.02%
Investment Properties for Sale
$286,755
MLS 31669850
18322 All Oak Trail
Houston, TX 77084
Addicks Park Ten
Single Family Residential
4 beds4 baths2,620 sq.ft.
CAP RATE
Trad. 2.41%Airbnb 3.14%
Top Performing Houston Properties
Investment Properties for Sale
$734,900
MLS 36179598
1523 Auline Lane
Houston, TX 77055
Spring Branch East
Single Family Residential
4 beds4 baths3,620 sq.ft.
CAP RATE
Trad. 0.57%Airbnb 7.92%
Investment Properties for Sale
$105,500
MLS 61627704
4531 Lelay Circle
Houston, TX 77022
Independence Heights
Single Family Residential
2 beds1 baths862 sq.ft.
CAP RATE
Trad. 4.21%Airbnb 7.88%
Investment Properties for Sale
$110,000
MLS 64367847
1901 S Voss Road #53
Houston, TX 77057
Woodlake - Briarmeadow
Condo/Coop
2 beds1 baths1,020 sq.ft.
CAP RATE
Trad. 5.11%Airbnb 7.54%
Investment Properties for Sale
$229,900
MLS 35033987
610 Edgebrook Drive
Houston, TX 77034
Edgebrook Area
Single Family Residential
3 beds2 baths1,573 sq.ft.
CAP RATE
Trad. 1.92%Airbnb 7.43%
Recently Sold Homes in Houston, TX
Investment Properties for Sale
$157,000
MLS
3339 Atherton Canyon Ln
Houston, TX 77014
Willowbrook
Condo/Coop
3 beds2 baths1,683 sq.ft.
CAP RATE
Trad. 3.62%Airbnb N/A
Investment Properties for Sale
$351,000
MLS
21218 Glen Willow Dr
Houston, TX 77375
Willowbrook
Single Family Residential
4 beds5 baths3,372 sq.ft.
CAP RATE
Trad. -2.71%Airbnb N/A
Investment Properties for Sale
$254,850
MLS
504 Anita St
Houston, TX 77006
Midtown
Townhouse
3 beds3 baths2,290 sq.ft.
CAP RATE
Trad. 3.42%Airbnb 4.20%
Investment Properties for Sale
$129,000
MLS
3846 Westmeadow Dr
Houston, TX 77082
Eldridge - West Oaks
Condo/Coop
2 beds2 baths1,240 sq.ft.
CAP RATE
Trad. 3.30%Airbnb -1.01%
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
Investment Properties for Sale
$160,000
MLS 76158556
9931 Steelman St Street #A
Houston, TX 77017
Meadowbrook - Allendale
Multi Family
3 beds1 baths1,492 sq.ft.
CAP RATE
Trad. 3.86%Airbnb N/A
Investment Properties for Sale
$190,000
MLS 12880289
10012 Lucore Street #A
Houston, TX 77017
Meadowbrook - Allendale
Multi Family
4 beds2 baths1,222 sq.ft.
CAP RATE
Trad. 2.64%Airbnb N/A
Investment Properties for Sale
$260,000
MLS 62214430
537 Hoffman Street
Houston, TX 77020
Greater Fifth Ward
Multi Family
3 beds1 baths1,260 sq.ft.
CAP RATE
Trad. 1.62%Airbnb N/A
Investment Properties for Sale
$325,000
MLS 56745896
1816 W Little York Road
Houston, TX 77091
Acres Home
Multi Family
3 beds2 baths2,056 sq.ft.
CAP RATE
Trad. 1.38%Airbnb N/A
Homes Below Median Price in the Houston, TX Real Estate Market
Investment Properties for Sale
$734,900
MLS 36179598
1523 Auline Lane
Houston, TX 77055
Spring Branch East
Single Family Residential
4 beds4 baths3,620 sq.ft.
CAP RATE
Trad. 0.57%Airbnb 7.92%
Investment Properties for Sale
$105,500
MLS 61627704
4531 Lelay Circle
Houston, TX 77022
Independence Heights
Single Family Residential
2 beds1 baths862 sq.ft.
CAP RATE
Trad. 4.21%Airbnb 7.88%
Investment Properties for Sale
$110,000
MLS 64367847
1901 S Voss Road #53
Houston, TX 77057
Woodlake - Briarmeadow
Condo/Coop
2 beds1 baths1,020 sq.ft.
CAP RATE
Trad. 5.11%Airbnb 7.54%
Investment Properties for Sale
$229,900
MLS 35033987
610 Edgebrook Drive
Houston, TX 77034
Edgebrook Area
Single Family Residential
3 beds2 baths1,573 sq.ft.
CAP RATE
Trad. 1.92%Airbnb 7.43%
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
Houston Airbnb
$70 per night
Entire home/apt · 2 beds
Upper Kirby/Galleria/Montrose/Med C
714
Houston Airbnb
$66 per night
Entire home/apt · 1 bed
Memorial Blvd studio.
682
Houston Airbnb
$64 per night
Houston Airbnb
$63 per night
Houston, TX Homes for Rent
Investment Properties for Sale
$1,650
MLS 95445306
11223 Hall Greens Court
Houston, TX
Greater Hobby Area
Single Family
3 beds2 baths1,542 sq.ft.
Investment Properties for Sale
$2,100
MLS 4340896
Investment Properties for Sale
$3,000
MLS 72226632
5310 Meadow Lake Lane
Houston, TX
Greater Uptown
Single Family
3 beds2 baths2,563 sq.ft.
Investment Properties for Sale
$2,900
MLS 89314233
5750 Yarwell Drive
Houston, TX
Meyerland Area
Single Family
4 beds3 baths2,550 sq.ft.
Houston, TX Open Houses
Investment Properties for Sale
Open 2 PM to 4 PM
$415,000
MLS 24932220
1306 Moorhead Drive
Houston, TX 77055
Spring Branch West
Single Family Residential
3 beds3 baths2,176 sq.ft.
CAP RATE
Trad. -0.58%Airbnb -2.39%
Investment Properties for Sale
Open 2 PM to 4 PM
$425,000
MLS 53826321
1126 W 18th Street
Houston, TX 77008
Lazy Brook - Timbergrove
Single Family Residential
3 beds3 baths2,058 sq.ft.
CAP RATE
Trad. 0.79%Airbnb -0.87%
Investment Properties for Sale
Open 11 AM to 2 PM
$310,000
MLS 8996514
915 Chinni Court
Houston, TX 77094
Addicks Park Ten
Single Family Residential
3 beds2 baths2,437 sq.ft.
CAP RATE
Trad. -0.29%Airbnb 1.74%
Investment Properties for Sale
Open 1 PM to 3 PM
$269,500
MLS 82100273
3814 Pine Forest Green Boulevard
Houston, TX 77084
Addicks Park Ten
Single Family Residential
4 beds3 baths3,217 sq.ft.
CAP RATE
Trad. 0.39%Airbnb 1.17%
Best Houston Neighborhoods for Buying Investment Property
69%
Mashmeter
property price
$330,206
Median
cap rate
7.51%
Traditional
7.81%
Airbnb
rental income
$2,067
Traditional
$2,149
Airbnb
homes for sale
10
occupancy rate
61%
Airbnb
68%
Mashmeter
property price
$405,000
Median
cap rate
7.36%
Traditional
6.51%
Airbnb
rental income
$2,482
Traditional
$2,198
Airbnb
homes for sale
22
occupancy rate
59%
Airbnb
68%
Mashmeter
property price
$679,500
Median
cap rate
4.85%
Traditional
3.60%
Airbnb
rental income
$2,744
Traditional
$2,041
Airbnb
homes for sale
49
occupancy rate
65%
Airbnb
83%
Mashmeter
property price
$392,500
Median
cap rate
6.80%
Traditional
7.71%
Airbnb
rental income
$2,224
Traditional
$2,523
Airbnb
homes for sale
10
occupancy rate
57%
Airbnb
66%
Mashmeter
property price
$585,000
Median
cap rate
4.33%
Traditional
5.19%
Airbnb
rental income
$2,112
Traditional
$2,532
Airbnb
homes for sale
5
occupancy rate
47%
Airbnb