There are conflicting reports on whether or not Houston is a good market for real estate investing.
Based on a new report from HomeUnion, Houston is one of the best cities in the US to invest in rental property. That source claims that although oil prices have led to substantial layoffs in the area, Houston’s status as a biotech hub and leader in the medical and research fields provide diversity and stability to its economy.
However, the impact of the oil slump on the housing market has been felt. The rate at which home prices were increasing has slowed, and in some areas has even dipped. And according to Zilllow, rent growth has also slowed.
About Houston’s Neighborhoods
With over 2 million residents, Houston is the largest city in Texas.
When it comes to buying investment property, Houston’s neighborhoods offer lots of variety. Assuming you’re not looking to buy a high-end luxury rental property, we’ve take the liberty of describing some of Houston’s neighborhoods to consider when looking for a rental investment property. Keep in mind that some estimates put the number of neighborhoods at over 600, so this is just the tip of the iceberg.
- Highland Heights: with an average monthly rent of about $700, this Houston neighborhood offers more affordable rentals and a good mix of owner and renter occupied residences. Although it’s vacancy rate is higher than the US average, it’s lower than some other Houston neighborhoods.
- Alief: singles, families, and retirees live in this diverse, older Houston neighborhood. Known for more affordable rentals, there is good access to public transportation. Community colleges are in the area. According to NeighborhoodScout.com, average monthly rent in Alief is $852. Although lots of renters live in Alief, the rental vacancy rate is on the high side. Many jobs are in the sales and services industries, and incomes are low to average.
- Clear Lake: one of the most popular suburban neighborhoods in Houston, and home to the University of Houston-Clear Lake, this neighborhood is popular with families, offering great schools and low crime rates. The neighborhood is known for being relatively wealthy, with most homes being owner-occupied. The average monthly rent is $1,557.
- Foster Place: one of the more affordable Houston neighborhoods, the average monthly rent in Foster place is $625 and the median price for a home is just under $94,000. This older neighborhood is comprised of mostly smaller single-family homes and apartments. The vacancy rate is pretty high in this mostly low-income area.
Help From the Property Management Experts
If you’re seriously considering investing in Houston rental real estate, a realtor experienced in rental investments and property management can be a wealth of information. You can find out about the neighborhoods that offer the best returns on investment, best resale, and the neighborhoods that attract the best renters. If you decide you want to self-manage your rental, your realtor will help you find properties that are closer to your home and suggest other considerations, such as whether you want a property that doesn’t require much maintenance.
To find out more about self-managing a rental property in Houston, or hiring a property management company to help you, stay tuned.