HOUSTON REAL ESTATE TEARS THROUGH APRIL AT A RECORD PACE

[Jhoana Olarte]

• Single-family home sales increased for the eleventh consecutive month, up a dramatic 47.4 percent year-over-year with 9,105 units sold;
• The Days on Market (DOM) figure for single-family homes dropped from 58 to 40;
• Total property sales rose 58.3 percent with 11,348 units sold;
• Total dollar volume increased 85.9 percent to about $4.0 billion;
• The single-family average price reached a record high, rising 20.0 percent to $371,854;
• The single-family median price climbed 17.6 percent to $295,000 – also a record high;
• Single-family homes months of inventory registered an historic low 1.4-months supply, down from 3.4 months year-over-year and below the national inventory of 2.1 months;
• On a year-to-date basis, single-family homes sales are running 24.4 percent ahead of 2020’s record pace.
• Townhome/condominium sales shot up 112.7 percent and reached record-level pricing with the average price up 8.8 percent to $246,940 and the median price up 11.0 percent to $200,000;
• Single-family home rentals fell 3.4 percent with the average rent up 11.0 percent to $1,960;
• Townhome/condominium leases rose 15.1 percent with the average rent up 8.0 percent to $1,688.

HAR

[Cindy Carriger]

What are the drivers for the increases?  I would assume newcomers to the Houston area...are there new large employers who have landed there in past 12 months? 

I live in the DFW area and have rental property (close to 50 units).  I have noticed an increase of people coming from out of state to find a place to live.  Most recently, from Califonia, Michigan, and not sure where else.  

My home town, North Richland Hills, which is the 3rd largest after Fort Worth and Arlington in Tarrant Co. has added thousands (my guestimate) of apartment units as 3 and 4 story buildings.  Most of Texas, at least where i have seen personally, typically and historically would have apartment buildings going only 2 levels up. 

My city also has 2 Transit Oriented Development sites (where the passenger train will stop), which is where the majority of the 3 and 4 story apartments are being built (within say3/4 -1 mile away.)  We have also a seen a build up of Multi-Use areas with business at the lowest floor and apartments above in recent years.  That, of course, is going on all over the US as a part of making communities 'walkable' to lessen the car travel.  However, until less car travel is a way of life our streets are going to be a lot of fun to drive on because of increased traffic!!

I'd love to hear others' thoughts on the increase of multi-story apartments and train centered growth.