Don’t be discouraged to buy an investment property for sale in Houston; recent real estate forecasts suggest another strong year for the Houston real estate market despite Hurricane Harvey. In fact, the Greater Houston Area is recovering fast, and the forecast for 2018 is positive with an estimated growth of 2.8%, making the Houston real estate market one of the healthiest US housing markets now!
Below, we explain why Houston real estate is still an attractive housing market for many real estate investors, in addition to giving you a better understanding of Houston real estate in 2018.
Houston Real Estate After Hurricane Harvey
Big weather events hit many areas of the US hard last year, and the costs of repairing the damage have been massive. Hurricane Harvey has enormously impacted the real estate investing market in Houston. According to Ralph McLaughlin, chief economist at Trulia.com, Harvey reportedly flooded about 114,000 homes (14.2% of the housing stock), totaling $29 billion in Houston real estate.
In spite of this, the city has shown its trademark resilience, seeming to have joined the pace of the national average by now. 2018 is expected to see real estate growth of 2.8% in the city, meaning now would be a good time to invest in the Houston real estate market. In addition, Harvey’s devastating economic impact had a surprising silver lining on the Houston real estate market, especially for home buyers.
Real estate investors have renewed interest in investment properties that are located in the areas that were not flooded. These property buyers now have confirmation that these areas can survive a catastrophic event, thus they won’t be in any danger of damage.
Another recent trend is that properties that Hurricane Harvey damaged have started to see a pickup in sales. Many real estate investors saw an opportunity to buy damaged investment properties for a cheap price in the Houston real estate market.
Click here to search and find cheap investment properties in the Houston housing market!
This, in turn, has led to an increase in the rental market in Houston real estate. People whose houses were damaged by Hurricane Harvey started to rent investment properties. This gave real estate investors an opportunity to make money off of renting out investment properties they may not be living in, such as single-family homes, townhomes, and condominiums.
Houston Real Estate Market Trends
The 2018 US housing market forecasts that many people living in more expensive cities such as New York, San Francisco, and Los Angeles will be moving to Houston. This is thanks to the low prices of investment properties and lower mortgage rates. Not only that, but many offshore real estate investors are choosing Houston as the best city to invest in the US housing market. Therefore, although Houston real estate will stay in a recovery mode in 2018, real estate experts believe the housing market is already on a significant upward trend.
According to Realtor.com, there are 13,869 homes for sale and 6,512 homes for rent in the Houston real estate market, with a median listing price of $269,000 and price per square foot of $130.
As previously mentioned, demand for rental properties has increased, affecting both single-family homes and townhouses as well as condos. Leases for single-family homes rose 13.6%, while townhome and condominium leases rocketed 34.8%. Moreover, the average rent increased by 2.8% for single-family homes (to $1,776) and 2.9% for townhomes and condos (to $1,533).
Related: What Are the Expected Residential Real Estate Trends in the US Housing Market for 2018?
Some of the best neighborhood to consider when looking to buy an investment property in Houston real estate are Kingwood Area, El Lago, Clear Lake, Addicks Park Ten, Taylor Lake Village, Greatwood, Memorial, Lake Houston, New Territory, and Cinco Ranch.
Interesting Facts about Houston Real Estate
If the above-mentioned numbers did not encourage you to buy an investment property in the Houston real estate market, here are some more facts about the city that probably would:
- Buying housing is affordable in the Houston real estate market. The Houston real estate market is the most affordable option to buy an investment property in the State of Texas. In fact, Texas didn’t go through a housing bubble as other states in the US housing market did!
- Houston is, by far, the country’s #1 job creator as it’s the home of America’s booming oil and gas industry. The unemployment rate in Houston is far below the national level, and the forecast for 2018 expects even stronger job growth!
- Moreover, the massive international trade is yet another job boost to the city. Thus, it’s no surprise that Houston’s economy will continue to excel in 2018. Real estate investors are encouraged to buy an investment property in a housing market with strong employment and job growth as it’s easier to find good tenants in these areas.
- The New York Times calls Houston “one of the country’s most exciting places to eat!” The city offers a spectacular range of ethnic cooking, fantastic seafood, and great barbecue. Additionally, the NASA Astronaut Corps is in Houston – after all, the city called Space City – which makes it a great tourist destination.
- World-class museums and cultural landmarks fill the city. As a result, Houston passed New York as the most ethnically and racially diverse city in the US!
Related: Should Real Estate Investors Consider Moving to a New Location in 2018?
To start searching for the best investment properties to buy in the Houston real estate market, click here.
Houston Real Estate – The Bottom Line
Houston is a diverse city which offers a lot to real estate investors and potential property buyers. It’s not hard to see why the Houston real estate market is one of the best and most attractive housing markets in the State of Texas. The forecast for Houston real estate shows positive numbers, and, currently, the housing prices are relatively low in the wake of Hurricane Harvey.
So, if you’re looking to invest in Houston real estate, now would be a great opportunity to get on board and buy an investment property. We recommend that you do further research, and maybe even visit the city to get a hands-on experience.
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