Despite continued economic problems throughout much of the United States, some regions continue to perform quite well. Much of the Houston area can be included in this category of economic improvement, with new jobs appearing in both the healthcare and energy industries, which, in turn, is spurring a revival within the housing market.
Particularly popular among prospective homeowners as of late has been the arrival of new multi-family developments. These housing solutions allow Houston residents to obtain new, high-quality homes with locations perfectly placed for commuting to work. The majority of this construction is taken place in the western portion of the city, although a number of multi-family developments can be found in the East Downtown neighborhood, often referred to simply as EaDo. This addition of new homes in EaDo has been highly anticipated by city officials, many of whom have been working hard to encourage the growth of a large tax base in this area.
The increasing popularity of multi-family homes in the greater Houston area is reflected by both an increase in rent costs and occupancy rates. Currently, class A homes are in highest demand, boasting an impressive occupancy rate of 93.5 percent. Average rent for such homes is steady at $1,235 per month, or $1.35 per square foot per month. The class B market has also seen a fair amount of success in the past two years, with rent prices having increased modestly, albeit at a much slower rate than in class A neighborhoods. Growth in class C and D is certainly slower, but is predicted to pick up in the near future.
Features in new multi-family developments vary based on class and region, but a few trends are particularly notable, including wooden floors, splash pads as pool replacements, sound proofing and accent walls. Some pre-recession trends appear to have gone by the wayside, particularly the inclusion of stainless steel.
Real estate experts have expressed great enthusiasm for the continuing improvement in the Houston market. Inner loop Realtor Bill Edge points to an unemployment rate that recently dipped below six percent as a factor indicative of great promise in the housing market. As more and more families are able to escape the uncertainty of the recession job market, living in a nicer multi-family development is now a possibility for a greater array of Houston residents. And with the creation of new developments comes more jobs, thus bringing the positive changes in Houston full circle.
Remember, we are here to help buyers and sellers. Consider us your real estate source in Houston, Texas. Call investor friendly realtor Bill Edge at 713-240-2949 to see Houston homes in 24 hours or less.
Source: Houston Business Journal July 2012 & May 17, 2013, Multifamily Insiders