Home to NASA’s mission control and a lot of oil money, Houston, Texas, is a great place to invest in rental properties. While Texas itself may not be in the best shape for many real estate investors, the Houston housing market is the anomaly offering a plausible passive monthly income. Last year the median monthly rent for a three-bedroom house was $1,517. That’s 0.87% of the purchase price ($175,000), with the national average at 0.75%. On top of that, homes are expected to appreciate by 61% over the next seven years.
With a number as robust as these, its no wonder we’d focus on the area. But numbers aren’t everything. It’s important to understand what’s behind them. Here we will look at the reasons why investing in Houston is a smart move.
As the fourth largest city in the nation, it’s no wonder it’s also the largest in Texas and growing. The state estimates that by 2050 the population of 2.2 million will over double to 5.4 million—most of the people concentrated toward the city center.
As with any growing city, these days, the business and technology culture is booming in Houston. The population growth will ensure stability in the years to come.
The Houston port has the largest total cargo handled in the US. This makes the city a major attraction for those looking for work or whose employers are expanding business internationally. Many people from abroad and from within the US will inevitably be moving there. Not only that, but the port itself will continue hiring more and more workers to handle the increase in trade. All these people will be looking for temporary or permanent housing, boosting the Houston housing market significantly.
In Houston, educational opportunities are abundant. This is an important factor for most families moving to a new place, so it should be important to you as a real estate investor. You can choose from more than 60 school districts, plenty of charter schools, and about 200 private schools. Daycare, preschool, community colleges, and nationally ranked universities, the city offer great schooling for any family, no matter where they are on their path.
Houston number one in the US for job creation and has the second-largest concentration of Fortune 1000 companies at 49. A growing city means growing job opportunities, and with more opportunities, more people are looking for housing. Houston is currently near the top when it comes to job growth in the US, and the cost of living is well below the national average. Economists estimate that the city’s center will eventually provide 1,000 new jobs. That’s a great prospect for a real estate investor.
Along with all those Fortune 1000 companies, Houston ranks number 2 in manufacturing GDP in the US (6,400 manufacturers) at $80 billion in good annually. Along with the largest medical complex in the world (Texas Medical Center) with 58 institutions. It also has over 1,760 biotechnology companies, state of the art hospitals and research institutions.
Houston is also the energy headquarters of the US and a world center for the oil and gas industry’s research, production, exploration, and marketing.
Developing Housing Market
Big cities like New York and Los Angeles don’t have much room to grow. But Houston still has a lot of space within the town to grow because of its low-density sprawl making it a great place to build new houses and apartments. And with the affordability in the city, you have a great opportunity to maximize your investment.
Variety of Properties
With a great business infrastructure and the low-cost Houston seems to offer an advantage to most property investors and owners. The icing on the cake is the wide variety of properties available.
Why Look Any Further?
Of course, if you are to invest in any property, it is wise to do your research and not just take the advice of one blog. That said, our research shows that the Houston housing market is a great option when looking for new places to invest. It’s expected to continue growing; it’s full of profitable businesses, and it’s affordable, at least for now. Get on it soon because opportunities like this are fleeting.
Want to invest in a Houston property but live out of town? Try a property management company to help you keep you informed and your property going. They can stay on top of things like rent collection and conduct regular maintenance inspections.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.