Houston Area Home Demand Expected to Increase
Home demand in the Houston area is escalating, and is expected to remain elevated for several months or more, according to a recent article in HousingWire. The article reports findings from Freddie Mac that cite the loss of 15,000 Houston homes due to hurricane damage. Thousands of apartment units were also damaged.
Collectively, storm-damaged areas of Texas and Florida lost an estimated 270,000 homes, adding further pressure to already-tight regional housing markets. Rebuilding the affected areas will be a lengthy process, due to constraints in material supply and construction labor.
Here in Texas, construction labor shortages were already affecting contractors before the storm hit. It’s estimated that the Houston area needs about 20,000 skilled laborers to meet rebuilding demands.
Higher home prices and rising rents are already here. As reported in our prior blog post, Houston average home prices reached a new high of $291,767 in September. Meanwhile, the Houston Chronicle reports that apartment rents are averaging $1,000 per month as of October.
While housing costs are increasing, and are likely to keep rising through 2018, it should be noted that Harvey’s impact sharpened home demand that was already on the rise. The market trends we are seeing have been amplified by Harvey, but it is not the sole driver. Houston’s growing economy remains strong, and our diverse employment opportunities continue to attract new residents.
And while there is pressure on home inventory, there are excellent Houston homes on the market for buyers who are ready to take action!
Before you buy or sell a Houston home, obtain your personal real estate consultation from the KW Energy Corridor Team! Our professional resources and unsurpassed market knowledge will be your advantage! Contact us today!
KW Energy Corridor Team
11757 Katy Fairway | Suite 930
Houston, TX 77079