Houston real estate market has been booming in recent years, and this trend is continuing in 2023. It makes sense to look at investing in Texas and GL&L Holdings can help you when you’re looking to do fix & flips, or fix and hold for cash flow purposes, small new construction loans, non-owner occupied/investment property cash-out, loans, etc.
Houston’s Booming Real Estate Market
In 2022, Harris County added the second-most total residents of any county in the U.S., growing by more than 45,000 residents, according to research from the Kinder Institute for Urban Research.
Houston-The Woodlands-Sugar Land added nearly 125,000 residents from July 2021 to July 2022, ranking second among the nation’s major metros in population growth, according to the Greater Houston Partnership’s analysis of U.S. Census Bureau data.
- Now, the metro has a population of 7.34 million.
- Harris County grew by more than 45,000 residents to a total population of 4.78 million.
- The population gains come from two sources — births outpacing deaths, and people moving to the area. Two-thirds of the gains in 2022 came from the net increase of people migrating.
- The surge in residents helps to explain the region’s job growth, strong demand for housing, and increased congestion on our roads and freeways, per the GHP.
The Impact of Population Growth on Housing Demand
Flashback: In 2020 and 2021, the Houston metro area saw the least population growth since 2003, with approximately 75,000 new residents each year.
The big picture: The past few years have been especially turbulent for population trends, with the COVID-19 pandemic affecting birth and death rates, interstate migration, and immigration.
- Last year, nine of the nation’s 20 largest metros — including New York City, Los Angeles and Chicago — shed population, and five added fewer than 20,000 residents.
- Yes, but: The Houston-The Woodlands-Sugar Land area remains the fifth-most populous metro, behind New York, Los Angeles, Chicago and Dallas-Fort Worth.
- “At current growth rates, the rankings of the 10 most populous metros are unlikely to shift anytime soon,” per the GHP.
- Dallas-Fort Worth saw the largest population increase last year.
- Zoom out: With last year’s population surge, Texas became the only state other than California with a resident population above 30 million.
- Texas has five of the top 10 fastest-growing counties in the country by percentage and six of the top 10 counties with the largest numeric growth.
Insights for Buyers and Sellers in the Houston Real Estate Market
According to recent data from the Houston Association of Realtors, the average home price in Houston has increased by 9.5% in the past year, with a median price of $307,000. This increase can largely be attributed to the low inventory of homes available on the market, coupled with a high demand from buyers looking to take advantage of the historically low interest rates.
With the influx of buyers looking to purchase homes in Houston, it’s no surprise that homes are selling fairly fast. In fact, the average number of days a home spends on the market in Houston has decreased by 16.7% in the past year, with the average home now spending just 30 days on the market before it is sold.
So, what does this mean for buyers and sellers in the Houston real estate market?
For buyers, it’s important to act quickly when you find a home that you’re interested in. With homes selling quickly, you don’t want to miss out on the opportunity to purchase your dream home. It’s also important to work with a real estate agent who is familiar with the Houston market and can help you navigate the buying process.
For sellers, now is a great time to list your home. With low inventory and high demand, there are plenty of buyers looking for homes just like yours. Additionally, with homes selling quickly, you’re likely to receive multiple offers on your home, which can drive up the selling price.
Overall, the current real estate market in Houston, Texas is hot! There’s still a fundamental LOW supply/inventory market and people are still moving to Houston by the thousands!
GL&L Holdings: Your Partner in Houston Real Estate Investment
If you’re thinking about buying or selling a home in Houston, now is a great time to do so.
Remember that we at GL&L Holdings are here to try to assist. Whether you’re wanting a loan for non-owner occupied houses or are looking to invest in many of our real estate projects. If you also want to consider becoming a co-lender with us on many of our real estate loans that are backed by 1st Lien collateral loans, get in touch with us for a no-obligation and free consultation.
