If you’ve ever considered investing in a location with a thriving real estate market, Houston, Texas just might be the place for you.
Also affectionately known as H-Town and Space City, Houston has become iconic for its impressive job opportunities, world-class attractions and amenities, top-performing schools, and a vibrant food scene.
Whether you want to invest in a single-family home in one of Houston’s 88 Super Neighborhoods or prefer a sleek condo in the city proper, it’s important to learn more about the area’s real estate market stats and trends before exploring your options in the fourth most populous city in the US.
What are Houston’s real estate market stats and trends for 2022?
Houston has a very strong housing market, with 11,384 homes sold in April 2022 alone. Single-family homes sold during that period, according to data collected by the Greater Houston Partnership, had a median listing price of $343,990. Condos and townhouses, on the other hand, had a median listing price of $231,000, while high-rise units fetched an average of $482,452.
According to a 2021 report by personal finance publication Kiplinger, there is an upward trend in the Houston real estate market, with home prices in the city increasing by 37% since the real estate cycle market peaked in May 2006, and by nearly 70% since the real estate cycle market bottom in March 2012.
Houston, according to the same Kiplinger report, has an affordability index of 4 out of 10. This puts Houston’s housing affordability at the mid-range level, which could explain the city’s thriving rental market.
According to a May 2022 report by the Houston Association of Realtors, the average rent for a single-family home in the city stands at $2,164 while the average rent for townhomes and condominiums is $1,831.
Given the city’s diversity and its long history, houses in Houston come in a wide range of architectural styles. For instance, popular during the early 19th century were Greek Revival, Dutch Colonial, Mediterranean, Mission Revival, Queen Anne, Craftsman, Folk National, and Victorian. Today and in the last century, Mid-Century Modern and Contemporary styles remain dominant.
Some of the best homes and real estate properties in Houston can be found in neighborhoods like Downtown Houston, Midtown, Montrose, Second Ward, and West University Place, all of which are noted for their close proximity to offices, shopping malls, dining establishments, and green spaces.
Those who wish to live outside the city proper can look to options provided by neighborhoods like Clear Lake, Sugar Land, and The Woodlands.
Why now is the right time to invest in Houston real estate
Houston is well-regarded for the quality of life it offers to its 2.3 million residents – a number that’s projected to grow even more within the coming years due to the area’s abundant job opportunities.
A major factor behind the stellar quality of life in Houston is the lack of a state income tax, which means that Houston’s residents have a bit more spending power compared to residents of other major metropolitan areas like San Francisco or New York.
There is also no shortage of top-performing schools in Space City, which is good news for those looking to give children access to quality education. Some of the top schools in Houston and its surrounding areas include Carnegie Vanguard High School, Eastwood Academy, Young Women’s College Prep Academy, and Kerr High School.
Houston also takes enormous pride in its vibrant food scene, which features dishes from all over and which has been described by the late celebrity chef, author, and TV personality, Anthony Bourdain, as a “wonderland of strange and diverse.”
Already a bustling metropolitan city, Houston is set for further growth and development in the near future, including the construction of several exciting mixed-use spaces. Because of everything that it has going for it, buying Houston real estate sooner rather than later will benefit investors if only to avoid stiff competition and to take advantage of all the opportunities that will continue to unfold in this vibrant location.