A Look at the September Houston Economy – Key Takeaways
Each year, the Greater Houston Partnership publishes an updated list of Houston Facts. The annual publication takes a much deeper dive into data from around the Houston region than the similar monthly reports that CKR has previously covered. There is a plethora of information in the report for real estate investors looking to enhance their portfolios in the Houston area.
Key takeaways from the 2019 Houston Fact sheet include:
· The Houston area has the 7th largest metro economy in the country at $490.1 billion in gross domestic product (GDP). If Houston were a state, it would be the 15th largest economy behind Michigan and ahead of Maryland and Indiana
· Houston has added 500,000 jobs and $100 billion to its GDP between 2008 and 2018 even amidst two recessions and two major hurricanes
· Multifamily occupancy was 89.6 percent at of the end of 2018 across 647,941 units
· As of Summer 2019, 53 apartment communities with 15,723 units are under construction with an additional 92 communities with 27,313 units either proposed or in the planning process.
· On average, rent is $1,022 per month
· One out of four school-aged children in Texas are enrolled in Houston area schools across the 60 school districts in the Houston area
· Houston’s cost of living is 26.3 percent below the average of the nation’s 20 most populous metropolitan area, ranking it the third most affordable
In addition, Yardi released their quarterly U.S. Multifamily Outlook, which gives a nation-wide forecast of the multifamily industry. Key takeaways from the Yardi Matrix report include:
· Rent growth has increased by 2.6% from last year – the seventh straight year above the 2.5% average
· The South and Southwest have the fastest growing rent due to fast-growing economies and relatively affordable housing
· Transaction volume and investment in the multifamily industry reached an all-time high of $115 billion, signaling that demand is not diminishing
Demand for multifamily housing continues to be robust, as the industry is seen as a safe haven especially in areas with thriving economies and low cost of living mainly in the South and Southwest areas of the country, including Houston. The Houston area economy continues to thrive, with more and more apartment communities being built to meet the high demand for housing.
To learn more about multi-family property investments in the Greater Houston area, reach out to CKR’s award-winning property management team.