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Why You Should Invest in the Houston Housing Market


Houston is growing at a rapid pace. Reports show that the job market in Houston is still going strong due to its diverse economy (not solely relying on oil), and young urbanites are flocking here for the opportunities and affordability.

It’s the perfect time to capitalize on the fact that there’s a huge demand for housing in Houston, but not much supply. As of May 2015, according to the Houston Association of Realtors, the housing inventory is at a 2.9 month supply. Six months of inventory is required to have a balanced market.

Further, it found the average sale price of a single-family home climbed 4.3% since 2014 – from $270,167 to $281,724.

Quick Facts About Houston’s Growth

Forbes named Houston the #1 fastest growing city for 2015, and it was also on Forbes’ list of “Best Buy Cities: Where to Invest in 2015.”

Even though Houston is growing, its housing remains extremely affordable (for the time being) for such a large city. According to a report by the Greater Houston Partnership, the average sale price of a single-family home in the Houston metro area is $256,151. Compare that to San Francisco at $801,775, or Seattle at $370,646. What about cost of living? Houston comes out ahead there, too. It has below average grocery, utility, healthcare, transportation, and housing costs when compared with other major metro areas in the US.

From 2005-2014, the greatest growth in Houston has taken place inside the Loop created by Interstate 610. The unique urban neighborhoods of River Oaks and West University Place continue to be in demand.

Overall, Houston is a well-rounded place to live if you’re a single professional, have a family, or are an empty-nester. Let’s take a closer look at some of the most popular neighborhoods in Houston.

Midtown Houston

With Midtown undergoing extensive redevelopment, now is a good time to get into the housing market, as prices will likely increase once all planned improvements have been made. New shops, homes, entertainment venues, parks, and restaurants are being built or have been built.

As a result, homes here have been increasing in value consistently over the last 10 years, with 49% growth from 2005-2014. As of 2015, the average home value in this neighborhood is $338,408.

Museum District 

The Museum District has also been growing steadily over the last 10 years (from 2005-2014), with homes netting a 69% increase in median sales. Over the same period, the average price per square foot has increased by 43%.

This is a great place to consider moving to because of its diversity – there are plenty of housing options here for young professionals, families, and couples without kids. Luxury high-rises are being built as well.

Along with that, the Museum District has lots to offer in way of art, culture, and outdoor enjoyment. It is home to 19 museums (11 which are completely free all of the time), and Hermann Park also houses the Houston Zoo. If you need something to do in the neighborhood, you’ll have plenty of options to choose from.

The Museum District is also a great location if you work in healthcare, as the Texas Medical Center is minutes away.

The average home value in this neighborhood is $805,380 as of 2015. 

Upper Kirby 

Do you want to live a life of luxury? Upper Kirby is the perfect neighborhood for you. It’s been experiencing a lot of growth as it’s easily accessible and walkable.

It’s attractive for young professionals and couples as it has vibrant nightlife, is close to public transportation, and can provide residents with a shorter commute to work. The convenience makes paying higher housing prices worthwhile.

Families can prosper here, too. Upper Kirby is known to some of the best schools in the neighborhood, and it has three parks.

As of 2015, the average home value in Upper Kirby is $667,234.


Houston’s lack of housing and increased demand is pushing prices higher. In January 2015, Mark Dotzour, chief economist and director of research for Texas A&M University’s Real Estate Center commented, “Even if the amount of home sold were to fall this year, overall prices should rise, based on the diminished housing supply.”

Additionally, Local Market Monitor, a national real estate forecasting firm, named Houston the number one housing market where home prices are likely to increase over the next few years.

Houston's growing housing market is welcome news for its residents. Any home you buy in Houston holds a strong likelihood of being a good investment for years to come.