Houston is a beautiful place to live in and raise a family. Its fascinating history, healthy business climate and booming housing real estate market provide a secured real estate profile both for local and foreign property investors. The Houston real estate market with its track record of having some of the best long-term real estate investments in America is truly an investment opportunity that comes with high profitability.
You may have heard that Texas is the best state to invest in real estate, but what makes it such an attractive prospect? How is the Houston housing market performing this year? Is Houston real estate market a profitable market? To answer these questions objectively, we need to use real estate data so can make an informed decision on whether it’s a good idea to start your investment property search with Houston property investment.
What Makes Texas Such An Attractive Prospect?
- major metros are Houston, San Antonio, Dallas, Austin, Fort Worth
- pre-owned home sales are rising
- broad range of real estate investments
- bigger markets have higher price-to-rent ratios
Is the Houston real estate market a profitable market? Let’s look at the Houston Real Estate Market Investment current data from Mashvisor:
- Median Property Price: $401,276
- Price per Square Foot: $170
- Price-to-Rent Ratio: 18
- Traditional Rental Income: $1,871
- Traditional Cap Rate / Cash on Cash Return: 1.7%
- Airbnb Rental Income: $2,399
- Airbnb Cap Rate / Cash on Cash Return: 2.4%
- Airbnb Occupancy Rate: 55.4%
If you’re looking to invest in the area, here’s a look at the 5 primary reasons why you should consider investing in Houston real estate market.
5 Reasons to Invest in Houston Real Estate Now
1. High Population – Experts have predicted that Houston will keep a steady pace with the country’s leading markets because of its population’s continuing need for housing. Its thriving business culture, fashion, sport, research, technology, education and many other things is the primary reason to start Houston property investment.
2. Strong Economy – Houston property investment benefits from being the incredible job prospects as it is an important trade, business, energy, and medical center; fair average purchase prices and positive real estate market forecasts. The Texas economy is strong and Houston has got a lot of business-friendly factors and favorable tax laws which have motivated no less than 20 Fortune 500 Companies are headquartered in the Houston metro area. This makes it even more exciting reason to invest in Houston properties.
3. Affordable and Growing Buyer’s Market – Although home prices have been steadily rising in recent years, Houston is still an affordable buyer’s market. The average home in the city is sold anywhere from 5 to 20% below fair market value. It is worth mentioning that at the height of the pandemic in March 2020, Houston sold 571 more single family homes than it had the year previous. Houston real estate market is still developing with many inner-city neighborhoods still has spaces for construction and residential housing.
4. Stable Job Growth – Houston boasts a huge healthcare, energy, aeronautics and transportation industry. Big companies want to have their centers set up in Houston and there are already 22 companies on the 2020 Fortune 500 list call Houston metro area their home. The Houston Metropolitan Statistical Area (MSA) is home to 41 companies on the Fortune 1000 list, ranking Houston fourth among metro areas in the country in Fortune 500 headquarters.
5. Variety of Investment Properties to Invest In – Whatever type of real estate investing you want to do, you can easily find a lot of investment properties in the Houston real estate market. There is a lot of variety of investment properties available to investors in Houston and there is a lot of movement going on in the real estate sector. This is another good reason to start property investment in Houston.
For a majority of property investors, real estate investing is one of the most important decisions they will have to make and choosing a property manager is a vital part of this process. Property managers can help you make a well-informed decision about critical factors that affect your chosen location because the first step in buying an investment property is to search for the best location. Location creates desirability, and when choosing the best one with the potential for growth and development, Houston property investment is a good place to start your search.
About ApexPro Real Estate
ApexPro Real Estate Group is a full-service real estate brokerage specializing in single family and attached residential properties throughout Houston and the surrounding areas. We are a privately-held small business that brings together top agents, cutting-edge technology, and unparalleled service to help clients throughout Houston to buy and sell real estate — and enjoy themselves every step along the way. Our client reviews are exhibits our dedication to help our clients extends beyond the closing table and we would love to earn your business.