How's the Rental Market Houston/Cypress/Katy right now?

[Rob Bianco]

How slow does the rental market get typically in the Cypress/Katy area during the winter months?

[Kristyn Grimes]

Hello,

I live and invest in Katy. Katy is unique because everyone wants to go to Katy ISD. In the winter time it's a small percentage slower than the summer time but still lots of movement into the area during Christmas break so the kids can be in Katy ISD by spring. however what I will warn you about is the type of market that Houston and especially Katy is in right now. The historically low interest rates and lack of inventory is causing rental rates to fall. People arent wanting to spend between 4 to $6,000 in rent and deposits when they can give that money to an FHA loan and own their own piece of Katy. I'm in bidding wars for each and every home at 200k or less and usually losing to people who otherwise could only afford to rent in a more balanced pre-covid market. I've been outbid by at least $3500 in the last 11 offers I've put out. Folks are paying $215k for $180k homes WITH foundation issues and minor, cheap upgrades. Taxes are high as hell in north Katy as well. $7500 on a $185k house. That's probably not much where you come from but it's all relative.

Cypress is a little less feisty because the school district is not as good and they have some flooding issues from time to time. I just made a post elsewhere where I warned about what I believe to be a potential downturn in 5-10 years in our market because oil and gas is taking a turn for the worst with a push for green energy. Either way, best of luck to you.

I would also suggest looking up areas like Conroe but do your flood research and Bryan/College Station near Texas A&M because there's tons of multi family there that area bargain basement prices now and will pop back up once the pandemic allows people to go back to school F2F.