There’s no denying that the Houston Rental Property Market has enjoyed strong growth in recent years but with overbuilding and few energy jobs than last year where does the rental market stand right now?
In this article, we will break down the local rental market and provide you with insight about what to expect from Houston if you plan on buying rental property in the area or moving to Houston and renting here.
About The Houston Rental Property Market
Over the last two years Houston has been one of the top cities in the United States for job growth but with falling oil prices earlier this year and overbuilding we’ve seen a drop in the rental growth rate but, while hiring in the energy industry remains soft the city has predicted that we can expect to see over 20,000 jobs added this year.
In fact, the oversupply of luxury apartments may have contributed to the scarcity of affordable rentals. The Chronicle also mentioned that over 6,000 units have already been knocked down or are scheduled for demolition. These older and cheaper units were to be replaced by more expensive housing.
People with higher incomes may benefit from decreases in rent or other concessions that landlords might offer. Renters with more modest incomes still won’t find the rents affordable and may have trouble locating cheaper rentals in many parts of the city. While landlords may struggle with occupancy rates in neighborhoods that are typically considered the most desirable, middle-class renters may have to satisfy themselves with longer commutes.
The number of units downtown in Houston are expected to double by next year. The downtown market also has the highest average rental rates in the entire city. It doesn’t matter how much trendy and convenient urban apartments are if job growth doesn’t support the increase in inventory.
Opportunity For Growth In Urban Areas
With an oversupply of luxury apartments in Downtown Houston there definitely is an opportunity for investors to purchase older rental properties in urban areas like The Heights, especially if they fix up those rental properties and offer a more affordable rental property to tenants who don’t want to pay up to $1,800 per month for a luxury apartment with tons of amenities.
Get Houston Rental Property Management
For the best Houston Rental Property Management contact Vestpro Residential Services by calling us at (832) 971-1841 or CLICK HERE to connect with us online.