Houston Housing Market: What You Need to Know

In the city of Houston, and in many other urban areas throughout the country, millennials are leading the charge towards living in densely populated cities. This has resulted in a huge demand for housing that is affordable and offers an urban lifestyle. And while this is a good thing for those who are lucky enough to live in one of these trendy locations, it’s also led to some issues. Specifically, there isn’t enough housing to meet the growing demand. As a result, home prices have gone up, making it even more unaffordable for many potential buyers. With that said, let’s take a look at what you need to know about the Houston real estate market so you can make informed decisions about buying or selling a home there.

What You Should Know About Houston’s Real Estate Market

The demand for Houston real estate is high, and there are a couple of reasons for this. First, the city of Houston offers a lot in terms of employment opportunities. The energy sector makes up a significant portion of Houston’s economy and is a major reason for the city’s growth. Additionally, Houston is home to two of the country’s largest ports, so its trade and transportation sectors are growing as well. Houston is also home to a large number of immigrants, which is also contributing to its population growth. These factors make Houston an attractive option for millennials looking for a place to live and work. And because of this, the demand for housing in Houston is high, which is contributing to the city’s supply issues.

Houston as a Millennial Mecca

Houston is one of the most ethnically diverse cities in the U.S., making it a millennial mecca. It’s also one of the most affordable big cities in the country, which makes it an attractive option for young people. With a cost of living well below the national average compared to other large cities, Houston offers a great quality of life at a reasonable price. And while the city is known for its energy industry, there are many other areas of growth that are expected over the next decade as well. With a young and growing population, Houston is one of the most attractive cities for millennials in the country. In fact, 24.7% of the city’s residents are between the ages of 20 and 34, which is higher than the national average.

Supply Issues in the Houston Housing Market

As we mentioned, one of the biggest issues facing the Houston housing market is a lack of supply. Houston is on track for the biggest population boom in 40 years, but the housing market isn’t keeping up. In fact, only around 100,000 new homes were constructed in Houston between 2011 and 2017, even though the population grew by over 200,000 during that same time. That means that the average Houston household has less than two square feet per person. It’s no surprise, then, that the demand for housing is high, even if you take into account the large number of new people coming to the city. With a low supply and high demand, prices are going up, meaning that it’s even more difficult for millennials to buy their first home. However, there are still some decent entry-level home options in Houston, though they’re a bit more expensive than they are in other smaller cities.

Home Prices in Houston Are High

As we’ve mentioned, Houston has seen a dramatic increase in home prices. While the average home price in Houston was around $218,000 in 2012, it had climbed to $290,000 by 2017. That’s a 32% increase in just five years, which is double the average national increase of 15% during that same period. The reason for this is simple: there’s a shortage of housing, which means that everyone who wants to buy needs to compete for the same limited supply. This is a particular problem for millennials, who have lower incomes than many other groups. That’s why many millennials have either been priced out of the Houston housing market entirely, or forced to put down a much larger down payment than they would have liked. And it’s also why many millennials are opting for other, more affordable types of housing. Go here for more about the city of Houston.

Conclusion

Houston is one of the fastest growing, most ethnically diverse cities in the country, making it a millennial mecca. It’s also one of the most affordable big cities in the country, which makes it an attractive option for young people. However, Houston is facing a growing issue: a lack of available housing. This is due in large part to the growing population and the fact that developers aren’t constructing enough new homes to accommodate everyone. With a low supply and high demand, prices are going up, meaning that it’s even more difficult for millennials to buy their first home. However, there are still some decent entry-level home options in Houston, such as in the Greater Heights, though they are more expensive than they are in other parts of the country.