Houston Real Estate Market: What Investors Should Know

When it comes to investors in Houston, Agent Jody Gauthier thinks the catchphrase “everything is great in Texas” can also be applied to their real estate portfolios: bigger praise gains, bigger returns and bigger rental earnings.

But the climate in Houston is hot in multiple ways. The crowd of buyers in the area means working with a knowledgeable, top-performing local agent is more important than ever. With two decades of experience and investor-oriented expertise, Gauthier has the knowledge to close contracts as competition grows.

Here he shares in his own words some ins and outs of investing in Houston.

Background of real estate

I have been an active agent for about 22 years. I started my real estate career in 2000 in San Diego, California but quickly made my way back to Texas. I have been in my current market since 2005.

What makes the Houston real estate market unique?

I think Houston’s real estate market is unique in its resilience. As a community, we have not only endured the global epidemic, we have improved. Home sales were at an all-time high, with more than 100,000 homes sold by 2020. We have overcome numerous adverse weather conditions in the last one year and still have a large number of new arrivals in our great kingdom.

More city analysis from BiggerPockets

What kind of numbers can investors expect in Houston?

The Houston rental market is holding strong. Last year the average rent increased to about $ 1.25 per square foot. Supply is on the rise, with more than 4,000 permits issued last month. Low occupancy rates and high demand make Houston a major area for investment.

How competitive is your market now?

The Houston housing market is extremely competitive at the moment. In fact, I’ve never felt anything like it.

The property receives multiple offers within hours of being listed. In many cases, buyers will make an offer without seeing the property in person. They are also waiving the assessment and option / inspection period.

What kind of rental demand are you currently experiencing in your market?

The demand for rent in our market is high; Inventory low. The average rent for single-family homes rose 11% to 1, 1,960, while the average rent for townhome and condominium rose 8% to 68 1,688.

Which Houston neighborhood are you most excited about?

Houston has many neat, eclectic parts of the city that are coming and going. Edo (East Downtown), Garden Oaks, and the Rice / Museum District have all experienced double-digit appreciation rates in the past year. I’m really excited about West Houston / Katie’s new boardwalk project that recently broke ground.

What kind of investment features do you think investors should consider?

Nowadays a lot of people are working from home, I think short term rent, rural property and co-worker / mixed-use office spaces are good places to keep an eye on for years to come.

Which strategies have been most successful in your market?

The BRRRR method seems to be a difficult acquisition strategy in our local housing market. As the appreciation rate increases, it doesn’t take too long to capitalize on a little instantaneous equity. If you are willing to keep a sweat equity, you can expect very favorable results in terms of our current market conditions.

What do most homeowners in Houston do for a living?

Houston’s main occupations are medical and healthcare, as well as oil and gas. Memorial Herman Health Systems employs more than 26,000 people in our local market. Shell, Schlumberger, ExxonMobil, and Halliburton all have multiple locations in our area.

New! Investor friendly agent

No matter your investment experience or where you want to invest, contact a local agent who knows the market inside and out and can evaluate the properties from an investor’s perspective. Here’s how Bigger Pocket’s Agent Marketplace works:

  1. Choose your market
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Is any industry moving in or out of the area?

There has been a lot of news lately about big companies moving to Texas. Low housing costs, low tax rates, and low regulations are all reasons why companies are now driving Texas home calls.

HP recently decided to relocate their home base from San Jose, California to Houston. The Woodlands campus is set to open in early 2022.

Large wholesale / manufacturing corporations (Room to Go, Goa) and distribution centers (Amazon, FedEx) are moving west of the city, due to the convenience of transportation to our expanded Interstate 10.

What do you personally like about Houston?

Houston’s vibrant, vibrant culture is largely due to its diversity. In Houston alone, 145 languages ​​are spoken, and the state as a whole is the nation’s second most diverse state.

I love the richness and inclusion that brings this diversity to our wonderful state. I think our culture is really appealing to those who like to move here, and that’s a huge factor in our strong real estate market.

What kind of post-closing professional network do you offer for your clients?

We are a stop shop for your real estate investment needs. My team provides staging, property management, and interior design and remodeling services (by Voter # 1 Remodeling Company Katie Times Two consecutive years).

As active investors ourselves, we have established long-term connections with top industry leaders in our local market. From investor-friendly title agents to loan payers who offer a wide range of loan products, we can help investors build connections to grow their portfolio.

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