While property prices in Houston are approaching historic highs, investors are still buying homes nearly as quickly as advertised. As per the Houston Association of Realtors, the total sales volume for single-family houses is about 1.7% above last year’s sales, with the scarcity of affordable homes fueling increased demand for rental homes.
Although a strong real estate market like this might be upsetting for homeowners, it is perfect for rental property developers. That’s because the robust employment market draws more individuals, and the competitive housing market forces them to rent.
Houston may be overlooked with all the attention shifted around Texas real estate markets such as San Antonio and Dallas. If so, you may want to reconsider: The ‘Space City’ provides investors exceptional value and proximity to a significant housing inventory.
For many individuals, relocating to Houston is a breeze. The area’s modest cost of living, employment development, and facilities provide few entrance hurdles and make it suitable for long-term residence.
This guide explores why the Houston real estate market is fairing well and where it is heading. Read on if you want to discover some Houston housing market statistics you should know before you move!
Houston Real Estate Prices
As per the Greater Houston Partnership, Houston real estate prices continue to grow by double-digit percentages. The typical sale price of family residencies in Houston recently surpassed $350,000 (June 2022), a rise of more than 43% from 2020. As housing prices in Houston continue rising, more individuals opt to rent rather than buy.
Luckily, we buy houses Arlignton owners are selling. There are more opportunities out there!
Important Market Statistics:
- As of June 2022, the Zillow House Value Index (ZHVI) for Houston is $270,000
- Over the past year, housing prices in Houston surged by 21.7%
- Over the past five years, Houston property prices have surged by more than 54%
- HAR reports that the median sale price for residential homes is $314,000 (June 2022)
- The price of a typical single-family home sales in Houston hiked 16.0% over the past year
- Houston’s year-to-date sales of residence houses surged 4.4% over the same period last month or year
- The average number of days a Houston property spends on the market when you sell a house fast in Texas dropped to 13 days on market average price
- Inventory of Houston home prices for sale is barely 1.6 months
- The most affordable Houston area to purchase property is in the Greater Inwood, where the typical listing price is $195,000
Houston Cost of Living
The cost of living index per Area Vibes is compared against the national average of 100. For instance, if an area has a ‘70%’ cost of living, it is 30% less than the national average. If the cost of living is 105, it is 5% greater than the national average. The percentage breakdown for every index constitutes housing (30%), goods and services (33%), infrastructure (9%), groceries (13%), and utilities (10%).
Key Houston Cost of Living Statistics:
- Houston has a general cost of living index rating of 94%.
- Houston inhabitants spend significantly more on utilities, infrastructure, and healthcare than their colleagues in other Texas areas. Nonetheless, Houston’s cost of living is significantly cheaper than other top U.S. cities.
- Of the 20 major metropolitan regions in the U.S., only the St. Louis metropolitan area is cheaper than Houston.
Take a look at our Houston neighborhood map for more details.
Average House Sale Prices
The Houston real estate market is at its peak. This is evident in the first time new homes listings, sales, price, and inventory data recently released by the Houston Association of Realtors.
Average House Sale Prices Statistics:
- As of June 2022, the average house sale price for single-family homes for sale is $436,425
- The percent year-over-year increase in single-family average home value is a 10.9 percent increase
- If you own a property, you may anticipate monthly housing expenditures of around $1,646, slightly higher than the national average ($1,595). Renters’ monthly housing costs average $1,041, somewhat less than the national median ($1,120).
- Realtor.com says the median price is $340,000, slightly above the national average property-listing price of $293,000.
Historical Price Change and Affordability
Property investors estimate the prospective demand for rental properties in Houston by analyzing historical price fluctuations and housing affordability in the metropolitan region.
Freddie Mac releases a monthly home value index report that analyzes the short-term and long-term patterns of housing prices in all of the United States’ main housing markets.
Home Value Statistics
Freddie’s most current FMHPI for the Houston, TX MSA indicates:
- June 2017 HPI: 179.6
- June 2022 HPI: 251.2
- Change in home prices during the past five years: 45.5%
- Change in house prices during the past year: 19.4%
- Change in property prices per month: 1.8%
Affordability
Seasoned property investors seeking to enter the Houston market also research housing affordability. This helps to estimate the existing and future demand for investment properties. Affordability analyzes the annual income required for cash home buyers in Houston.
Publication on business forecasting and personal finance Kiplinger releases a study on home affordability for the 100 largest metropolitan regions in the United States. The company assesses market affordability on a score from one to ten, with one indicating the most inexpensive markets and ten reflecting the least affordable.
Affordability Statistics
According to Kiplinger’s estimate on house affordability in Houston:
- From the peak of the previous real estate boom in 2008, Houston house prices have climbed by 37.1%
- From the previous real estate market low in March 2012, Houston house prices have surged by 69.5%
- Houston has a 4 out of 10 affordability rating, which helps explain the large proportion of renters in Houston.
Houston Job Market
Greater Houston added 31,000 jobs in May 2022, slightly past the 20-year or pre-COVID-19 average. In fact, Houston’s employment growth has exceeded the pre-COVID median for nine of the last twelve months.
The Greater Houston Partnership reports that the nonfarm payroll sector is at 3.2M, a record high. In eleven industries, including professional services, technical and scientific services, arts and entertainment in Houston surpassed pre-pandemic numbers.
Major Employment Statistics
- As per the Federal Reserve Bank of St. Louis, the MSA of Houston. Texas has a GDP of over $455 billion, up by over 18% in the past decade.
- Since COVID-19 started in 2020, Houston has created over a 400,000 job growth and employs over 3.2 million people.
- Over the last year, median family incomes in Houston climbed by 5.8%, but median home prices soared by 7.03%
- As of April 2022, Houston’s unemployment rate is 4.1%, with the fastest signs of development in mining, hospitality, leisure, business and professional services, transportation, and trade industries.
- Houston’s most sought-after sectors include energy, headquarters, manufacturing, aviation, logistics, and transportation.
- Houston ranks fourth amongst U.S. metropolitan regions for Fortune 500 headquarters due to its pro-growth administration, cheap expenses and restrictions, and lack of state-level Corporation or personal income tax.
- Houston is home to numerous colleges and universities, notably Sam Houston State University, Texas A&M University-College Station, Lone Star College System, and the University of Houston.
- About 84.3% of Houston inhabitants complete high school education and over 33.6% have a bachelor’s degree.
- George Bush Intercontinental Airport is the nation’s fifteenth busiest airport.
Quality of Life in Houston
With its combination of cultural events, dynamic communities, and reduced cost of living, Houston continues to attract more investors and inhabitants worldwide. The mix of affordable housing costs and the lack of a state or local income tax contributes to the city’s continued growth and vitality.
Major Life Quality Statistics:
- As per NerdWallet’s cost of living estimator, Houston has a lower cost of living than other places in Texas, such as Austin and Dallas, and is one of the finest locations to reside in the United States
- Niche.com gives Houston a general score of ‘A-,’ including strong marks for housing, entertainment, and public school district
- The finest residential areas in the Houston metropolitan region include Kingwood Area, Memorial, Astrodome, and Kingwood.
- The Houston Museum District houses 20 museums, cultural centers, community organizations, and galleries.
- About 7M people visit the Houston Museum District every year
- Houston sports enthusiasts have several teams to cheer for, including the NBA Houston Rockets, NFL Houston Texans, and MLB Houston Astros
Conclusion
Overall, Houston is a great residential area, and the housing market is only the beginning of what this city offers. The area attracts property investors and entrepreneurs with its diverse culture and booming economy. Hopefully, this article provided you with housing market trends in Texas that you need to know before relocating to make a well-informed decision.