With the US housing sector currently in the state of pulling itself back together, many investors are eyeing some key real estate markets they believe have the best investment potential, including Texas. As reported by Pricewaterhouse Coopers (PwC), Texas has two of the top cities, Houston and Austin , listed as best markets for the real estate investment boom Houston has been ranked as no. 1 for real estate demand. The elevating figures of housing sales in Texas are greatly contributed by the employment growth in the state along with the boost of important sectors such as gas and oil industry.
“In the past several years, we reported that real estate market participants’ main fears revolved around the uncertainty with the economy,” admitted Mitch Roschelle—partner and US real estate advisory practice leader at PwC. “Now, the trepidation in their eyes has more to do with the ability of the growing real estate markets to adapt to a series of mega trends impacting society and the global economy.”
ULI Global Chief Executive Officer Patrick L. Phillips stated that investors are aiming to locate investment prospects in cities that are normally away from core markets or cities which lie on US coastal areas mostly. He also said cities like Houston are coming thick and fast as strong competitors to these coastal places due to the employment opportunities and other perks it has to offer.
Houston is pulling investors to itself due to the rising numbers of new residents and families who are actively on the lookout for single-family rentals. Rental homes are getting hot on demand especially among families who want to acquire their own living space plus with the option and ease of shifting whenever they desire.
With these plethora of persuading factors, investors are simply moving quickly to purchase such in-demand investment properties in this metro area.
Realtor.com published the National Housing Trend Report in September stating that Houston has one of the most excelled housing markets with sales topping above the figures of other major cities. The median age of housing inventories in Houston was 54 days in September as compared to the median age of Los Angeles, Long Beach area which came as 56 days.
“The Houston market has been one of the best housing markets in the country coming out of the recession as its economy has been one of the strongest and fastest growing,” Jonathan Smoke, chief economist for Realtor.com, addressed in an email, according to The Houston Chronicle. “The market is not just recovering – it’s actually setting new highs in employment and home prices.”
Smoke further said the dynamics of housing trends may be influenced by the travelling of baby boomers and their demand for living spaces. As baby boomers are nearing their retirement days, they will start looking to sell their homes. It’s obvious they will have the reasons to prefer rental homes rather than needing to spend money and time for home maintenance. As per Smoke, the housing trend will also take considerable affects from science, technology, engineering and math (STEM) professionals who will start to move into some of the hottest growing areas.
According to the data provided by Chronicle, the STEM professionals call for around 5.5% of employment in Houston. Such high-paying jobs will make a place like Houston a perfect playground for them to thrive. However, the Houston market seems to be limited in inventory, with supply cut down by 25% as compared to the same time last year. The effect could turn renting decisions more wise and preferable for residents because purchasing prices will mount due to decreased supply.
Investors opting to buy Houston investment properties should work with a reliable real estate investment and lending firm that would help them to select the right channel and houses.