Housing market in Houston TX

[Tariq Bakroun]

I have been watching the housing market in Houston for some time now and noticed that the demand for homes is low and that homes tend to stay on the market for considerable amount of time before they sell. 

Is Houston a good area to consider purchasing real estate?

I am in the process of purchasing a vacant lot in Houston zoned residential/multi family. The intent is to construct residential units and put them up for rent or sell depending on the market. Any recommendations? 

Thanks,

Tariq

[Brian Alfaro]

Tariq,

The demand is definitely not low. Things have slowed a bit compared to a year or two years ago, but homes are definitely still selling. It just depends on the price point. Homes that are over $200k can sit 2-4 months on the market, but homes under $200k are still selling relatively quickly. There will always be good demand for affordable housing. If you push into the higher brackets ($300+k), they can definitely sit a bit. 

If you are building new construction SFH, that is something to consider as you develop your project. If you are building $200k+ homes, build it into your business plan/model that there could potentially be longer holding cost.

Here’s the latest update from HAR that gives you more details:

https://www.har.com/content/ne...