The housing market in Houston reached a new high in 2017, with more homes sell that year than in the previous record year, by a staggering 3.5 percent. A part of this rebound can be attributed to the recovery after Hurricane Harvey, but to say that’s the only thing driving sales would be unfair. There has been a lot of growth – Bridgeland continued to expand, with the 11,401 acre community selling 423 houses over the course of 2017 – having sold 333 in 2016. There is hope that the growth will continue and there are plans for a new model home park with lake amenities and a recreation center.
By December 2017, deals on 79,117 single-family homes had been closed on, which amounts to sales totalling $23 billion. Interestingly, the median house price for a single family home was up by 3.8 percent, to $229,900.
The energy slump had hit Houston hard, and Hurricane Harvey was a difficult period for Houston as well, so most had expected that the real estate market in Houston would have performed poorly in 2017. The recovery is good news for the real estate industry, and is being credited as a testament to the resilience of the communities in Houston, Texas.
The projections for 2018 show that the broader economy in Houston is likely to continue to grow, with almost 75,000 new jobs to be created. However, the property market is facing some headwinds. Single family home sales are growing, and sales of properties priced between $250,000 and $500,000 remain strong. The luxury sector, however, is seeing declines. Sales slipped in December and in January. It is unclear why sales are slipping in that sector. Houston remains a popular place to live for young people and for families – having some great schools and colleges, including some that are among the top performers in the United States.
It could be that property taxes in the region are an issue. Certainly, some parts of Houston have much younger populations, with retirees looking for other places where taxes are lower, to reduce their outgoings when they are on a fixed income. Houston could be seen as a place for the young (a large percentage of the population is under 20), and a place of diversity. That’s no bad thing, and could spell a boom period for smaller single family homes for a young but aspirational demographic.