February is a strong market for Houston’s homes sales and lease market, according to HAR. Despite soaring prices and that deadly Texas freeze which halted real estate activity for days, home showings still continued, which scored home sales to 22.9% with 7,372 units sold compared to 5,997 in February of 2021. On the other hand, Houston’s rental market benefited from this halt in the homebuying plans as single-family rental homes jumped 23.8% year-over-year. Quiet the opposite though for townhomes and condominiums leases as its numbers declined by 1%. Despite that, the rent for single-family rent rose 6.5% to $2,052, and 7.9% to $1,767 for townhomes and condominiums.
The Rental Market in Houston this February 2022
Surely, the real estate market in Houston is booming and with the pandemic still ongoing, you may want to weigh your options if you’re looking to buy a new home this year. Last January, the single-family average price rose 16.2% to $377,738, the highest ever for January; while for the month of February, the single-family average price rose 13.4$ to $395,871, which is also the highest of all time.
If you recall, the average rent for an apartment in Houston was $1,118 before the pandemic. If you want to compare real estate rentals this year – Single-family home rentals in January rose 7.8% with the average rent up 9.7% to $2,070; while townhome/condominium leases increased 2.6% with the average rent up 11.9 percent to $1,801. For February, single-family home rentals increased 23.8% with the average rent up 6.5% to $2,052; while townhome/condominium leases decreased 1.0% with the average rent up 7.9% to $1,767.
The Zumper National Rent Report last month looked into the rental data to provide insights into where the inflation is occurring the most. The report mentioned that there’s a correlation between rising rent and the Consumer Price Index (CPI). the report also listed the most and least expensive cities and cities with the fastest-growing rents and Houston landed on the 49th spot with 1BD at $1,220, and 2BD at $1,490.
Zumper’s Houston Metro Report last month has analyzed active listings last month across 4 metro cities to show the most and least expensive cities and cities with the fastest-growing rents.
The Most Expensive Cities For Rent in Houston Metro Area
- Houston & Spring were tied for the most expensive city with one bedrooms both priced at $1,220
- Conroe rent at $1,130.
- Galveston’s rent drop at 4.3% to $900
The Fastest Growing Cities (Y/Y%)
- Conroe up at 15.3% since this time last year
- Spring at 11.9%
- Houston at 9.9%
The Fastest Growing Cities (M/M%)
- Spring had the largest monthly rental growth rate at 2.5%
- Conroe rent climbed 0.9%
Investment Outlook for 2022
Houston has been one of the hottest real estate markets for years. Its real estate market has been on a seller mode and it will be in 2022. This means there will an imbalance in the supply and demand of homes where the Houston real estate market is leaning more toward the sellers. This offers great opportunities for investors who are looking to invest in rental properties in order to build equity and generate cash flow through long-term rental income.
The Houston real estate market has been in the highs and lows in the last 24 months of pandemic and other natural calamities. Despite these challenges, Houston real estate market has remained strong and one of the best markets for rental investment. Houston has remained relatively consistent where the rate of appreciation continues to remain above the national rate and is still one of the country’s top job creators.
So, if you’re thinking of buying your first home or your first investment property this year we recommend that you think long-term with your finances and investment choices. And if you have made your decision, make sure that you have saved more than enough for your downpayment and get preapproved. Lastly, work with a licensed real estate agent or realtor to help you navigate the complicated process of home buying or home selling from start to finish.
Work with Apogee Properties
Apogee Properties is Houston’s Premier Property Management Company. We work and live in Houston and our property managers are local. We’ve been in business for more than a decade providing comprehensive property management services in the Houston region ranging from a studio condo to a multi-family million dollar estate. Contact us to learn more about our property management services, and what we can do for you and your rental property.
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