We’ve given you several reasons why everyone is moving to Houston (having some of the least annoying neighbors in the nation is one of them), and it looks like we can make our case once more. The housing market is thriving in Bayou City, and as many people begin to crowd in, record low inventory has hit. So, it should come as no surprise that a new study found Houston in the top 10 markets for expansion.
Research conducted by the personal finance website Smart Asset investigated the housing markets best for growth and stability, with home value data from 400 metro areas in the U.S. The study ranked the nation’s top 20 cities, with Houston landing the No. 6 spot. A few key factors, including a 221 percent increase in home prices since 1997 and a 0 percent chance of home value loss, weighed heavily into the ranking decision.
Within the study, home-buying expert Liz Hutz notes that “the two main drivers of price increases are economic growth and job creation.” For Houston, economic development has been promising. Greater Houston Partnership reported that 2021 reached record numbers for job growth, helping to recover many positions lost following the onset of the pandemic. GHP data found that the “region created 151,800 jobs, a 5.1 percent increase over 2020.”
The Houston housing market is thriving indeed – In February 2022, sales of single-family homes increased by 22.9 percent to 7,372, compared to 5,997 in February of last year. The 2022 Market Update from the Houston Association of Realtors (HAR) showed that the demand for single-family homes hit an all-time high — with the sales volume increasing by 23.3 percent. “With fewer available housing options, customers placed a premium on single-family rental homes in February,” the market report notes.
But Space City wasn’t the only Texas city to receive high praise. Half of the top 20 metropolitan areas ranked in the study are in the Lone Star State — Austin-Round Rock-Georgetown (the Greater Austin metro) took the top spot on the list, beating out Midland, Texas, who claimed the No. 1 spot for growth and stability in 2021. The study finds that the 25-year average home price growth in Austin-Round Rock - Georgetown eclipsed Midland with a margin of roughly 102 percent.
Midland took the No. 3 spot, tying for first on stability, and fell behind in growth, ranking 38th. The home prices in the area skyrocketed 266 percent from 1997 to now, with a 0 percent chance of a 5 percent decrease in home value.
Dallas-Plano-Irving falls directly behind Houston (of course) at No. 7, with a 228 percent rise in home prices and only a 1 percent chance of a 5 percent loss in value. Odessa and San Angelo round out the top 10 with the No. 8 and No. 10 spots.
Although we never need a listing to tell us how great of a city we are, this just adds to the number of reasons Houston is the Athens of America.
For more information on data and methodology, visit Smart Asset.