In this article, we'll look at the top reasons that make Houston a great place to invest in real estate.
1. Rapid population growth
Greater Houston is America's most diverse and fastest growing metropolitan area, and immigration has contributed significantly to its growth and diversity. It has a population of over 7 million. Houston is the largest city in the state of Texas, and it is also the fourth most populous city in America.
Since 2010, the Houston area has welcomed nearly 1,1 million additional residents. Houston's population is expected to surpass 7,1 million by the end of the decade. Significant population growth is observed in Brazoria, Fort Bend, Harris and Montgomery counties. State demographers estimate that Texas's population will double to more than 54 million by 2050, and that much of that population will be concentrated in major metropolises, including Houston.
This growth is supported by the economic strength of the region. Immigrants make up about one-third of workers in Greater Houston. It is a popular city in the United States, where business culture, fashion, sports, research, technology, education and more are flourishing. Houston is also the city with the fourth tallest skyline in the United States.
All of these factors cause Houston to welcome millions of tourists and visitors every year, allowing Houston's real estate market to explode. Real estate prices fluctuate due to a number of factors, but none outweigh population growth. The net population creates a demand for housing and without a new supply of properties, this pushes up prices for renting and buying.
In Houston, there is about 24% less inventory than last year. Home values in Houston have been rising at a steady rate. The housing shortage has driven up prices, even during the pandemic and economic downturn. This is the number one reason to invest in the Houston real estate market.
2. Houston's real estate market continues to grow
Houston has plenty of room to grow and develop, unlike fully built cities like New York, San Francisco, Washington, etc. Houston has low-density sprawl, which is fantastic, and that means there's still space in the city for residential housing to be built. Many downtown neighborhoods still have either derelict or vacant space, and these land spaces can be used to build homes.
Investing in real estate in Houston is a perfect idea as there is a wide variety of investment properties available to investors. Houston has an extremely good business infrastructure and residential housing costs provide an operating cost advantage to potential investors.
There are plenty of acres of land available, and there is a lot of movement going on in the real estate industry in Houston, making it an ideal real estate market where investors can easily find old and new properties on the market. Regardless of the type of real estate investing you want to do, you can easily find a large number of investment properties that offer investors a strong opportunity to generate passive monthly income. This is another good reason to invest in the Houston real estate market.
3. Strong economic and job growth
When the economy and job growth are strong, the real estate market does well. So weak job growth means a poor real estate market, and vice versa, right? The Houston area is one of the most important industrial bases in the world and ranks second in manufacturing GDP in the United States. It has the world's largest medical complex, the Texas Medical Center, which provides clinical health care, research, and education across its 58 institutions.
Houston is home to more than 1 life science and biotechnology companies, state-of-the-art hospitals, healthcare facilities and research institutes. Houston is America's energy headquarters and a global center for virtually every segment of the oil and gas industry, from exploration and production to marketing and technology.
4. Booming international trade
Another reason investors should invest in the Houston real estate market is because of the booming and expanding business. Houston's economy is based primarily on the energy industry, especially oil. However, health care, biomedical research and aerospace are also important sectors. One of the reasons people migrate to a certain location is for international trade and ease of doing business, and Houston has the largest US port in terms of total tonnage of goods handled.
Houston has the largest port in the United States by total tonnage of cargo handled, even for ocean tonnage, making it the busiest port in the United States when it comes to foreign trade. The Port of Houston employs a lot of workers, and this port also attracts many business people and travelers from all over the world every year, and all these people need a place to stay, whether it is temporary or permanent housing. This is where real estate investors come in! You can easily rent a property or even sell it to strangers who are still in Houston on business. What else should you think about before deciding to invest in Houston?
5. Education and quality of life
The quality of life and employment opportunities are the economic motivations that push the heads of families to migrate from one region to another. It is important to assess quality of life by assessing economic, social and environmental indicators related to quality of life. The city of Houston, Texas is considered one of the top cities with a free business environment. According to the city rankings compiled by Teleport.org, Houston is a city to live in, with high scores in the areas of start-ups, health, leisure and culture. Its economy and education also score highly.
Security remains an issue. Safety.com ranked Houston, Texas among the five "surprisingly dangerous large American cities", noting that although more than half of Americans perceive Houston as a safe city, the rates of assault and vehicle theft there are actually quite high, while reported rape rates are considered “medium”.
It should be noted, however, that most of Houston's dangers are confined to the bad areas of Houston, so it's important to know which Houston neighborhoods to avoid when considering real estate investing. Some of the city's safest neighborhoods include Far Northeast, Pasadena, and Midtown, as well as the suburbs of Sugar Land, Spring Valley Village, and Friendswood.
Education is one of the main elements of quality of life. Many economists and educators favor public support for education, on the premise that education improves the overall quality of life for citizens. Educational opportunities play a key role in Houston's quality of life. Houston is a city rich in distinguished schools, universities, and colleges. The Houston Independent School District, the largest in the Houston area, serves 213 square miles with 288 schools, 13 educators, and more than 000 students. It's one of the biggest companies in Houston.
Houston has more than 40 colleges, universities and institutions – offering higher education options for everyone. The Greater Houston area has 14 major institutions of higher learning. For the fifth consecutive year, Baylor College of Medicine has been recognized by Healthiest Employers LLC and the American Heart Association for its outstanding health and wellness initiative, BCM BeWell.
Baylor St. Luke's was recognized as a Top Hospital for 2019-2020 by US News & World Report, including second in Houston and third in Texas. The University of Houston was ranked among the best in the United States in several categories, according to the US News and World Report Best Colleges 2021 ranking. UH ranked in the top 50 as “Top Performer for Social Mobility”, and has also appeared on the lists of “Top Public Schools” and “Best Value Schools”.