Stats and forecasts for the Houston real estate market in 2022
In Houston, buyers, sellers, and real estate investors never missed a beat. According to the Houston Association of Realtors (HAR), home prices are still rising, and the single-family rental market is still strong and robust.
While a solid real estate market like Houston might be difficult for homeowners, single-family rental property investors may find it ideal. Because of Houston’s robust job market, more individuals flock to the city, and when the home market is tight, they opt to rent instead.
Moving to Houston is a no-brainer for many folks. The cheap cost of living, job development, affordability, and facilities in the area provide low entry hurdles and a location to call home for the long haul.
We looked at why the Houston real estate market is doing so well and where it might be headed. Here’s what we discovered.
Houston’s three-county region grew by one million people in the last ten years, accounting for a fifth of Texas’ population growth. Harris County (where Houston is the county seat) expanded by 15.6 percent between 2010 and 2020, while Montgomery and Fort Bend counties grew by 36.1 percent and 40.6 percent.
Houston’s housing market remained strong during the epidemic and into 2021. According to the Greater Houston Partnership, 8,320 single-family homes were sold in November 2021, bringing the total year-to-date sales to approximately 107,000 single-family homes. The prospects for a great year in 2022 appear to be favorable. As housing prices in Houston continue to rise, more people are opting to rent rather than buy.
In the Houston real estate market, massive bidding wars with several offers on newly listed homes are becoming the norm. The Houston housing market’s robust sales activity, paired with fewer properties for sale, is driving single-family home prices upward and rising demand for rental property.
According to the Houston Association of Realtors, single-family rentals increased by 7.1 percent year over year, with average single-family rents rising by 8.5 percent, more than double the rise of townhouses and condominiums (Nov. 2021).
People rent instead of buying when they can’t afford to buy, so Houston’s rental market is so strong. In reality, renters account for 52 percent of households in the Houston metropolitan area.
Houston’s mix of cultural activities, dynamic neighborhoods, and affordable cost of living continue to attract citizens and businesses worldwide. Affordable housing prices, combined with the lack of a city or state income tax, contribute to the city’s continued growth and vitality.
The potential for development is evident, and the natural qualities of the land are some of the most appealing features you could wish for in an investment district, with an outstanding balance of metropolitan regions and open spaces in the suburbs. For a little more than a decade, the Texas real estate market has been relatively quiet, but the real estate market in Houston has remained relatively stable while its neighboring areas have dragged their feet.
Houston has long been a hotspot of buyer activity; ask the slew of international investors who flock to the city to make real estate investments. Houston used to appear immune to the highs and lows of housing cycles, but it now seems to have caught up to the national average.
However, its pace of appreciation remains slightly higher than the national average. Houston remains one of the country’s best real estate investment markets, thanks to its diverse economy and high home demand. Houston is one of the top job generators in the country and the home of America’s expanding oil industry. It is more diverse than New York City and allows you to stretch your money further than anywhere else in the country. Houston is also one of the country’s hottest real estate markets.
Even though home prices in Houston have risen to record highs, the market remains appealing to residential real estate investors. The problems for first-time homeowners will persist as they compete for potential investment properties at the lower end of the market.
Contact us if you want to invest in the Houston real estate market. We have the best options for you.
