The Houston housing market in 2021 holds fascinating surprises on its own. While we still have many questions about the Houston real estate market, especially on which neighborhoods are doing well despite the economic turndown, political climate and the pandemic, the Houston housing market has been running 7.7% ahead of 2019’s record pace. After all the uncertainty and roller coaster ride it was in last year, the Houston housing market was strong in 2020 because of the record-low mortgage rates, it give buyers more purchasing power.
If you are thinking about buying a home in 2021, or thinking about investing in a Houston property, it is only logical to tap into the stability of the Houston housing market as it provides one of the best and secured long-term real estate investments in America.
Why Houston is the Ideal real estate market for investors this 2021
The latest U.S. census estimates make Texas the highest-growth state in the Union adding about 370,000 people in the July 1, 2019-2020 period; with Houston as the biggest city by population in the state of Texas, which accounts for 8% of the state population. Houston’s booming population growth has made it one of the fastest growing cities in the U.S. Let’s take a look at key population statistics.
- Houston is the biggest city by population in Texas and the fourth most populous city in the United States, after New York City, Los Angeles and Chicago.
- The metro area population of Houston is 6,491,000, a 0.80% increase from 2020.
- Population density is 3,660 people per square kilometer, which is one of the most densely populated major cities in US.
- Male population is 49.6% and 50.4% are female. Approximately 29% of residents are age 18-34, 36% are between 35-64 years, and 10% are in their retirement age – 65 years and over.
- Houston’s population growth is projected to reach 7.5 million people by the end of 2035.
- There are more than 145 different languages spoken in Houston, which is the third largest number of languages spoken in a U.S. city behind New York and Los Angeles.
- Houston is projected to tack on another 1,242,781 residents, a population growth rate of 17.2 percent from 2020 through 2029.
Job market in Houston
Houston is globally recognized for its major industries in energy, aeronautics and biomedical research. Let’s not forget that it’s also a home to at least 21 Fortune 500 companies in 2020 list. With employment as the driver, over 92,000 people moved to Houston last 2019. While the latest Texas jobs report shows the unemployment rate is slightly higher than the national average, the average annual income is higher than what residents of many other major metro areas make. Here are a few fascinating job market highlights in Houston.
- Houston’s economy is driven approximately 60% by the U.S. business cycle, 30% by oil markets, and 10% by long-term factors.
- Top industries in Houston are Health Care and Social Assistance, with total employment of 336,900; Accommodation and Food Services (294,800); and Professional, Scientific, and Technical Services (237,000).
- Houston is positioned as the “Space City” because of the NASA Astronaut Corps.
- The largest medical center in the world, which is larger than downtown Dallas is found in Houston – the Texas Medical Center.
- The Port of Houston is the largest in terms of total international tonnage handled, and third in terms of trade value.
Real estate market
Is it a good time to buy a property in Houston? You’ve probably heard that the Houston housing market is doing well despite the pandemic. Let’s look at the current 2020 statistics in Houston to help you decide if 2021 is a great year to buy a Houston property from Houston Association of Realtors (HAR) Market Update last November 2020.
- Single-family home sales increased for a sixth consecutive month, surging 25.6 percent year-over-year with 7,990 units sold;
- The Days on Market (DOM) figure for single-family homes dropped from 59 to 46;
- Total property sales shot up 28.1 percent with 9,660 units sold;
- Total dollar volume jumped 43.9 percent to $3.1 billion;
- The single-family average price achieved a record high, rising 15.0 percent to $341,765;
- The single-family median price climbed 12.0 percent to $270,000 – the second highest median price of all time;
- Single-family homes months of inventory registered a 2.2-months’ supply, down from 3.6 months last November and below the national inventory of 2.5 months;
- Townhome/condominium sales jumped 23.4 percent with the average price up 2.5 percent to $224,130 and the median price up 11.8 percent to $190,000;
- Single-family home rentals fell 11.1 percent with the average rent down 5.5 percent to $1,882;
- Townhome/condominium leases declined 4.0 percent with the average rent up 11.5 percent to $1,674.
Quality of Life
Houston is ranked #3 in the Best Places to Live in Texas in 2020, #27 in the Best Places to Live in the US, and #22 in the Best Places to Retire. The Houston metro area is not just a global city and a hub for oil and gas industries, the dynamic city is surrounded by natural landscapes, excellent public and private schools, and nationally recognized, regional medical centers attracting people with entrepreneurial spirit and those looking for high-quality educational opportunities. Let’s take a look at why Houston has it all.
- Houston is the most diverse city in the U.S.
- Houston ranks as one of the best the best culinary scenes in the America representing at least 70 countries.
- The Houston Museum District has 19 museums in a 1.5 mile radius. The Museum of Fine Artsis is one of the largest museums in the U.S., which holds one of the best collections of American decorative art and spanning more than 6,000 years of history.
- Houston is the birthplace of nanotechnology.
Impact of COVID-19
Job losses have been the prevailing feature of the COVID-19 pandemic and the sector with the largest hit in Houston was the construction shutting down 30,700 jobs. Although the current unemployment rate in the region is 3.9%, slightly higher than the national average, the Houston’s future job growth is 30.9%.
The employment situation in the country is disappointing but not at all surprising given the circumstance. Houston home sales decline, but the recent figures shows a steady improvement and experts say that Houston is more resilient and one of the strongest performing cities despite the coronavirus and the depressed oil price that is impacting the oil industry.
Should you buy during a pandemic
Buying a real estate property in Houston is a big decision. While there are a lot of valid reasons not to buy a house during the pandemic, there are also a lot of smart reasons why you should continue with your plans. We understand that buying a Houston property is a big risk that’s why the best way to ensure success in your property investment is to work with a professional real estate agent, who can give you an expert advice on home buying or property investing.
Is it a good time to invest in a Houston property? Assuming you can afford – the interest rate is at historical record low!
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About ApexPro Real Estate
ApexPro Real Estate Group is a full-service real estate brokerage specializing in single family and attached residential properties throughout Houston and the surrounding areas. We are a privately-held small business that brings together top agents, cutting-edge technology, and unparalleled service to help clients throughout Houston to buy and sell real estate — and enjoy themselves every step along the way. Our client reviews are exhibits our dedication to help our clients extends beyond the closing table and we would love to earn your business.