It's easy enough to say that Houston's real estate market is hot right now, but what does that actually mean?
To answer that question, we must look at the city's current market conditions. Market conditions, from an area's job market to its quality of life, influence how we choose to invest in real estate. They help explain the health of any given real estate market.
To explain why the Houston real estate market is doing so well, we cover important market conditions influences to be aware of. So if you're considering investing in housing in the area, you'll want to keep reading.
Strong Job Market in Face of Pandemic
2021 is one of the best years on record for local job growth in the city's metropolitan area. In fact, the region has created 104,100 jobs since October of this year. Furthermore, the employment rate in certain job sectors in the metropolitan area is higher now compared to what it was before the COVID-19 pandemic.
Recent Rapid Population Growth
Houston's strong job market may be in part thanks to the city's rapid population growth. For example, a county surrounding the city of Houston, Harris County, has seen an impressive 15 percent rise in population growth in the last decade. Likewise, the city of Houston's population growth comes only second to Phoenix, Arizona, out of the top ten biggest cities in the nation.
Yet, an increase in population also means an upsurge in home prices and a drop in housing supply. This isn't all bad, because these real estate factors combine to make for an attractive market for renters.
Attractive Rental Market
As home prices go up and the housing supply dwindles, more and more Houstonians are turning to renting homes instead of buying them. It's for these reasons that over half of the residents in the Houston metropolitan area are renters.
The current state of the rental market may not be favorable for people looking to rent, but they're great for renters and real estate investors. By owning a rental property in Houston, you could be making quite a profit.
High Quality of Life
Houston becomes more vibrant with every new person who moves to the city. In fact, Houston is home to many diverse and lively areas and neighborhoods. Houston overall has highly rated public schools and nightlife and is considered to be among one of the best cities for families to live in.
In particular, East Downtown, Pearland, and Sugar Land are among the highest-rated cities and the three best places to invest in real estate in the Houston area.
Favorable Market Conditions in Houston Area
In short, the current market conditions for Houston real estate are very favorable. By considering all real estate factors, you can make a more informed decision when you invest in housing.
But when you invest in real estate, it's your responsibility to manage your purchases. With Terra Residential, you don't have to manage them alone.
Drop us a line and we'll see how we can help.