Houston is the fourth most populous city in the United States, trailing behind New York, Los Angeles and Chicago. The city’s population now stands at over 2.3 million residents. It’s anticipated that Houston will actually move into 3rd position by the end of the next decade. This bodes well for Houston real estate of course.
The city was found in 1836 by two brothers, Augustus Chapman Allen and John Kirby Allen. It takes its name from Sam Houston, the first president of the Republic of Texas.
But aside from these little facts, what is it that makes Houston such a popular and growing city? And what is the real estate market like for both investors and homeowners?
Let’s explore more here.
Why Live in Houston?
The Greater Houston is the most ethnically diverse metropolitan area found in the United States. Within this area, over 145 languages are spoken by city residents, and 90 nations have consular representation in the city. Houston is more diverse than even Los Angeles and New York.
But aside from diversity, what else makes Houston worth considering as an investing opportunity or new home area?
According to U.S. News and World Report, the city has 247 public elementary, middle and high schools in the area. There are also 382 private schools available. Most notable is the fact that 60 of the high schools made U.S. News and World Reports Best High Schools ranking report.
In addition, Houston is the home to 13 colleges and universities as well.
Houston has a diverse and robust employment market. While perhaps best known for NASA, the aeronautics industry or oil and gas employers, the market has actually become far more diverse in recent years.
There are over two dozen Fortune 500 companies headquartered in the greater Houston area. Included within this list are Sysco and Waste Management, as well as several energy related firms. (https://www.houston.org/houston-data/fortune-500-companies)
Annual income in the area is higher than the national average. The cost of living is also lower than the national average, making Houston an affordable option for many to live and raise a family.
When it comes to lifestyle, we could create a whole article on the benefits of living in the Houston area! So, for now, we’ll just focus on one small segment of life in Houston – the food scene.
Did you know that residents of Houston eat out more often than in any other city in the country? Yep, that’s right –
There are over 10,000 restaurants in Houston, and it’s considered to have one of the best foodie scenes in the country. When you combine the number of options plus the fact that the average meal in the city is less than the national average, why not eat out?
Houston Real Estate Market
The Houston real estate market is still going strong. According to the Houston Association of Realtors, single family home sales are up 10% over a year ago. In addition, there were over 7,000 sales in September which was all time high.
In terms of pricing? Homes are selling at a wide range of price points. However, the best-selling price points were ranging between $150,000 and $500,000. Those are the highest or lowest ends were not as strong.
There has been an influx of investors into the Houston real estate market. That’s making homes that are in the $150,000 to $200,000 in high demand as investor look for potential fix and flips or rental options to acquire.
Where to Buy Real Estate in Houston?
The age old question, where to buy real estate in Houston is a common one. The key factors in that decision are based on what your end goal is as well as your budget. If you are looking to flip a property then one area might be better over another for that purpose. Considering a place to rent or hold onto for awhile? Then that might lead you to another neighborhood and type of property entirely.
Based on current market conditions, and assuming that you are more interested in rate of return and an investment, some areas that might be a good fit for you would be the following:
Close to the action yet still with a neighborhood feel. Median price point in the low $500k range.
Locals just call it the Heights. Definitely an eclectic area that has a mix of residential and commercial. Median price is just under $500,000 for this area with some bargains still available.
Central location to everything. A median purchase price of around $340,00 makes it more affordable than some other areas.
Greater Third Ward
Like historical homes? Then this might be the place to explore. Home under $200,000 and smack in the middle of one of Houston’s Historic Districts.
This area of the city is actually an up and coming area. The area is expected to double in population over the next five year. Walking distance to everything and median purchase prices of around $369,000 make it an area worth considering.
With a median purchase price of around $250,000, this is an area to explore. Considered to be a business district, the area has townhomes and duplexes that enable residents to walk to work. Eateries, parks and walking trails make for an enjoyable lifestyle.
With its small town feel, great location and price points that average under $350,000, Clearlake might be an excellent spot to explore as well.
The Houston real estate market provides a wide variety of opportunity for both homeowners and real estate investors. The key is to determine what you are looking for and which areas within the ever expanding city offers you the best return on your investment.
Interested in getting financing quickly for your next Houston loan? If you would like to learn more about how you can quickly and easily qualify, contact us now. At Loan Ranger Capital, we’d love to speak with you about your real estate goals and objectives! Let’s see how we can help you starting TODAY!