Market Mayhem

Rent and Real Estate Prices Continue To Rise In Houston

A new study finds that soon-to-be homeowners are becoming less likely to buy a home due to higher rates.

By Craig Hayes December 1, 2021

Rent prices are rising in Houston. 

With 2022 in our sights, future homeowners and investors are faced with a shift from “pandemic pricing” in the rental real estate market. Rental discounts have been put on the back-burner in exchange for, at the very least, a pre-pandemic price range, though prices continue to rise due to inflation. While the real estate market is booming, you will certainly want to weigh your options if you are looking to own a home in the new year.

Houstonia previously reported that the renter’s market was ablaze in the Bayou City, and now, rent prices are now rising quicker than before. As of this month, the national median rent is $1,312, according to a report from Apartment List, a rental listing site. Since January, the national median rent has increased by 17.9 percent. Detailed in the same report, rent growth from January to November shockingly averaged at 2.6 percent in the pre-pandemic years between 2017-2019. Retrospectively, rent in Houston, in comparison to last year, increased by 10.5% with median rents at $1,000 for a one-bedroom apartment and $1,189 for a two-bedroom. Houston's year-over-year rent growth also lags the state average of 15.2 percent and the national average of 17.9 percent. Amidst the skyrocketing prices, it continues to be one of the most affordable places to live in the nation. 

“What is happening now is a massive rebound in rents," said Anthemos Georgiades, CEO of Zumper, a rental listing site. And much of that rebound has come through steady increases throughout 2021, he said. 

Several factors contributed to the higher rates, he said, "including people coming back to urban cores for in-person work and school, would-be homeowners remaining renters because they are priced out of buying a home and an overall lack of housing.”

To better aid potential Space City home buyers, Awning.com, a rental tech company that analyzes the rental property market, shared its key findings with Houstonia. Greenway, Upper Kirby, University Place, Greater Uptown, Afton and River Oaks, and Midtown are the most expensive neighborhoods to rent in Houston. These neighborhoods’ median home prices start at $599,000. Consequently, median rents for three-bedroom apartments run for over $3,100 in these locations. While these prices are expensive, there are several corners of Bayou City that offer considerably more affordable prices.

Northshore, Eastex-Jensen, East Houston, and Kashmere Garden are among the least expensive neighborhoods to rent in, joined by Greater OST/South Union. These median rents for a three-bedroom home lie under $1,350. Similarly, the same locations, excluding Kashmere Garden and Eastex-Jensen, also place as the least expensive places to purchase a three-bedroom home with median home prices under $165,000. 

For more details regarding the study’s methodology, visit the website.



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