While we’re investing in our own neighborhoods and towns, there’s one huge boom happening across the way: Houston. Even before Hurricane Harvey’s influence on the market due to flooded homes, because of the sheer size of the city and land surrounding it, real estate investment has always been prime as homes and neighborhoods constantly go through waves of revitalization.
Even after 2008’s market crash, the Houston market was quick to recover, as was pretty much the entirety of Texas’s economy. The market has been booming with an uptrend and real estate investment has been a pivotal part of renovating different neighborhoods within the city and its suburbs. More and more residents are moving into real estate investment as a means of building long-term wealth, which also ends up helping many homeowners in dire situations because they’re able to get out from under a mortgage that is drowning their finances.
After Hurricane Harvey, an influx of investors and contractors further increased the market’s trend as there were many homes being bought and sold due to flood damage or were otherwise uninhabitable. Other situations like fire damage or simple long-term vacancies are very prominent in a large city such as Houston with almost 3 million in population living there. Because of the age of the city, there’s also a lot of probate/inheritance or aging out of a home that requires a quick sell to liquidate for cash. All-in-all, there’s a huge market for real estate, which means Houston’s real estate economy a “blue ocean”.
Aside from the existing neighborhoods, there’s constant new development happening in the west and north of the city. The Woodlands and Conroe areas are expanding and building more as residents move from the inner city into these new development areas. Richmond and Sugar Land are also hugely popular in the southeast of the city, which have new master plan developments happening every year and homes are consistently pre-sold for residents that are looking to move out into the suburbs for family life or are moving in from other surrounding cities. The oil & gas industry promotes a lot of long-term residents to relocate in from other states, and most of the time these industry workers stay with a corporation for a large number of years. This means that they look to find a place the settle in for the long haul.
Houston’s market is great not only for trade workers and house flippers, but for those that are looking to rebuild neighborhoods, develop new areas, or deal in commercial. Both resident and commercial real estate presents a lot of opportunities in several areas of the city. The Third Ward district is already going through a gentrification as many of the old homes and warehouses are being bought up and redeveloped into new residential housing, which was in the works before Harvey. Post-Harvey, housing demands have significantly increased and there’s simply not enough housing to handle the displaced families from flooded homes. As such, there’s a reliance upon real estate investors who have the capital to actual take a damaged home and restore it so that these families can get back in them. Many individuals or families do not have bank loans as an option to restore a damaged home. That’s why real estate investors who use private funds are able to restore them to a point where families can get approved mortgages to purchase them.
This shows how the real estate investment market is not only just a means for building wealth, but it helps homeowners in need and helps housing needs that otherwise would go unmet due to how bank mortgages operate. Without investors, families would not be able to find new homes when they go through a disaster that a bank or insurance company tries to dodge when it comes to claims or restoring a property.
Information in this article was provided by Home Buyer Houston (https://www.homebuyerhouston.net).