The Houston multifamily market is thriving as population grows
Our team’s recent visit to Houston shined a light on the hot Houston multifamily market. Harris County, with Houston at its center, added 90,000 new residents in 2016. The broader Houston-Woodlands-Sugar Land metro area posted the largest increase in any metro area in 2016 with 156,000 new residents. Developers have been working tirelessly to meet that demand for housing.
Houston multifamily vs. single-family homes
According to research by Rice University, development of multifamily properties in the Houston area far outpaced single-family home builds. Over the past decade, 40 percent of new homes in the metro area were in multifamily buildings, and multifamily units account for 37 percent of all homes in the area.
In addition, multifamily developers plan to continue to build new units to prepare for future growth in the area. Hal Holliday, a commercial mortgage specialist in the area, commented on those plans, saying:
“If we slam on the brakes and don’t try to gently push on the gas we’re going to find ourselves back into a pent-up demand situation, and that’s always accompanied by rising rents and probably too many people jumping in.”
So, although a slump in the oil and gas industry has impacted the area, it remains a draw for many people. As companies locate in Houston, jobs and people follow. The city is home to 26 Fortune 500 headquarters, and top industries in the area include manufacturing and technology, biosciences and healthcare, aerospace and aviation, in addition to oil, gas and renewable energy.
In addition, the city’s geographic location makes it a key international trading hub, and much of the area’s growth is due to international immigration. It’s overall lower cost of living, compared to other top metro areas, makes it attractive to new residents as well.
As always, though, we like to look beyond the economics of an area to discover what makes a place tick. Sure, having a job makes a place look pretty attractive, but what really convinces you to relocate somewhere?
In Houston, the answers include:
- Weather. Oh, it’s so nice and warm. You can play outside all year long and rarely think about taking a jacket along. The weather also means a variety of outdoor concerts, events and festivals to please every taste.
- Free facials. Ok, maybe not spa-quality facials, but the humidity has a noticeable impact on your skin (we dry-climate Colorado gals should know).
- Food. This metro area is foodie heaven with, count them, 7,500 restaurants. This list from a James Beard award winner covers just the tip of the iceberg in Houston dining. You can’t beat Houston’s TexMex offerings; we especially loved Chuy’s tomatillo salsa.
- The people. Southern hospitality is no myth. Houstonians are some of the friendliest people you will meet.
- Shopping. From antiques to couture, Houston has it all. Check out The Galleria for an amazing variety of options, or spend hours wandering GreenStreet downtown.
- Sports. Football, baseball, basketball, soccer and even rodeos, this place has sports lovers covered!
- Arts and culture. From hilarious to high-brow, there is no shortage of options for lovers of art, music, dance and theater.
Houston is a great place to enjoy a thriving economy and a great quality of life. The metro area boasts a number of great neighborhoods and multifamily communities to meet the needs of renters across demographic groups.
To learn more about how we can help you brand and creatively market your multifamily property, contact us today.