Houston Real Estate Market Analysis
Houston, Texas is a thriving metropolitan community with many nice neighborhoods. Houston is the largest Texas city by population and the fourth most populated city in America. Houston is popular with young professionals, families just starting out, and wealthy, successful Texans. Houston has NASA’s Johnson Space Center and the healthcare facilities of the Texas Medical Center.
Real Estate Market Trends
The median listing price for a single family home in Houston is $359,900 (as of January 2016). For that listing price, it is possible to find a nice quality three-bedroom/three-bathroom home with about 2,400 square feet.
Houston Population and Demographics
The last U.S. Census conducted in 2010, shows a population in Houston of over 2.1 million residents. For those living in Houston, 26% are non-Hispanic white, 25% are Hispanic white (37.4% are Hispanic of all races), 25% are black, 6% are Asian, 0.7% are Native Americans, 0.1% are Pacific Islanders, 3.3% are mixed races, and 15.2% are other races.
Median Income and Cost of Living in Houston
The median income for an individual living in Houston is $20,000, for a household is $37,000, and for a Houston family is $40,000. The cost of living in Houston is 0.6% lower than other parts of Texas and 10.8% less than the cost of living in an average American city.
Real Estate Buyers in Houston
Houston is a city that attracts a younger demographic of single people looking for jobs and families that are just starting out. The single individuals, who are professionals, may purchase a condominium as their first property. Many younger families seek an inexpensive starter home.
Wealthier Houstonians gravitate to the finer neighborhoods of Memorial, River Oaks, the Heights, Meyerland, and Montrose. One home in the Memorial area listed for $43 million during 2015. This was the highest listing price for any home in the history of Houston.
Home Types
The Houston area has distressed properties, condominiums, and single-family homes for sale.
Distressed Properties
Homes damaged by storms or ones that are in bad repair, sell for the lot values. They list for as low as $12,500 for approximately a 5,000 square foot lot.
Condominiums
The least expensive condominiums, that need work, list for $20,000 for a one-bedroom, one-bathroom condo of 650 square feet. The most expensive condominiums are those found in the River Oaks area. In that area, a three-bedroom condominium with three and one-half baths lists for just under $2 million dollars.
Single-Family Homes
The least expensive homes are in better condition than distressed properties, yet still need some work. These three-bedroom/two-bath homes that are around 1,000 square feet, list for $35,000. The most expensive homes in Houston are located near the Museum District or in the River Oaks area. One listing for a home in River Oaks is just shy of $18 million dollars for a 21,500 square foot home that has eight bedrooms and twelve bathrooms.
Historical Price Trends
The median listing price for a home in Houston, at the beginning of 2011, was only $146,900 compared to the $359,900 median listing price in January 2016. The represents a 145% increase over the past five years or an average of 29% per year. The Houston market has clearly recovered from the collapse of housing prices that occurred during the period from 2006 to 2008.
Summary
Because of the substantial increases in value for homes that occurred during the past five years, the Houston real estate market is a “hot” market. Buyers need to hunt carefully and consider buying a “fixer-upper” to get a real bargain. It is definitely a good time to sell a property for a strong price. At Acres Solutions, we are happy to help both buyers and sellers in the Houston area.