Houston Real Estate Market 2020

Houston Real Estate Market Trends & Statistics 2020

Data Sources:

• https://factfinder.census.gov/
• https://www.zillow.com/
• https://www.deptofnumbers.com/
• RealWealth Property Team Data

The Houston housing market is more affordable than many other U.S. markets today.

• In 2019, the median price of 3 bedroom homes in Houston was $175,000. This is 21% lower than the national average of $222,000.
• In the neighborhoods where RealWealth members invest the median price of 3 bedroom homes in Houston was only $150,000, which is 32% lower than the national average.
• This shows us that real estate in Houston is more affordable than many other U.S. markets today. This is especially true in the Houston neighborhoods where RealWealth members are investing today.

Houston offers investors a strong opportunity to generate passive monthly income.

• In 2019, the median monthly rent for 3 bedroom homes in Houston was $1,517, which is 0.87% of the purchase price of $175,000. This is higher than the national purchase-to-rent ratio of 0.75%.
• In the neighborhoods where RealWealth members invest the median monthly rent 3 bedroom homes was $1,400 during this period. This is 0.93% of the purchase price of $150,000.
• This shows us that Houston offers investors a very strong opportunity to generate cash flow, at a significantly higher rent-to-purchase ratio than the national average.    

Houston home values have been rising at a steady rate.

• In 2012, the median price of 3 bedroom homes in Houston was $109,000. This means, in the last 7 years (2012 to 2019), 3 bedroom homes in Houston have appreciated by 61%. During the same period, 3 bedroom home values increased by 55% nationwide.

Houston rents have been rising faster than other real estate markets across the nation

• Between 2012 and 2019, the average rent for 3 bedroom homes in Houston increased by 27%. Nationally, rents only increased by 16% during this period.
• This shows us that property values are appreciating a little slower than other markets across the nation, but rents are increasing at a faster rate. This is good news for investors interested in strong cash flow opportunities.

Houston’s population has been growing faster than the national average.

• Since 2010, Houston’s population has increased nearly 18% and in the last year the number of jobs grew by 2.59%
• This shows us that more people are moving to Houston than many other U.S. cities today… likely because they are attracted to the growing number of jobs available in the area.

The Houston real estate market is creating more jobs than many other U.S. cities today

• In the past year, the number of jobs in Houston has grown by 2.59% versus 1.47% nationally.
• This shows us that the number of jobs in Houston is growing faster than many other cities in America. In fact, just last year 80,600 new jobs were created.
• In fact, Houston was recently named one of the top cities for job creation in the nation; new research also confirms that Houston has the sixth lowest cost of living in the nation.

Houston is Affordable

• In the neighborhoods where RealWealth members invest the median price of 3 bedroom homes in Houston was only $150,000, which is 32% lower than the national average.
• This shows us that real estate in Houston is more affordable than many other U.S. markets today. This is especially true in the Houston neighborhoods where RealWealth members are investing today.

Houston Offers Cash Flow Opportunities

• In the neighborhoods where RealWealth members invest, the median monthly rent 3 bedroom homes was $1,400 during this period. This is 0.93% of the purchase price of $150,000.
• This shows us that Houston offers investors a strong opportunity to generate cash flow, at a significantly higher rent-to-purchase ratio than the national average.   

Houston is Appreciating & Rents are Rising

• In the last 7 years (2012 to 2019), 3 bedroom homes in Houston have appreciated by 61%. During the same period, 3 bedroom home values increased by 55% nationwide.
• During the same period, the average rent for 3 bedroom homes in Houston increased by 27%. Nationally, rents only increased by 37% during this period.
• This shows us that property values are appreciating a faster rate than other markets across the nation, while rents have slowed down just a little. This is good news for investors interested in strong cash flow opportunities.

Houston Has Steady Population Growth & Rapid Job Growth

• Since 2010, Houston’s population has increased nearly 18% and in the last year the number of jobs grew by 2.59%
• This shows us that more people are moving to Houston than many other U.S. cities today… likely because they are attracted to the growing number of jobs available in the area.