High-Quality Suburban Rentals Attracting Residents Priced Out of Homeownership
- Affordability gap doubles that of the U.S. The metro’s median single-family home price surged 19 percent during the past year as migration to the market accelerated.
- Northwest portion of Inner Loop to be tested by supply influx. The Greater Heights/Washington Avenue submarket is an area of active development, which could apply pressure to fundamentals.
- The number of trades during the past 12 months ended in June was about the same as the previous year, though the average sale price advanced 9 percent to roughly $122,000 per unit.
- North Houston near the George Bush Intercontinental Airport and the Greenspoint area recorded stronger deal flow over the past four quarters.
- Upper-tier apartments have been changing hands most frequently in north and northwest suburbs including Cypress and Spring, where average pricing on Class A/B properties has been $140,000 per unit.
- Within the Inner Loop investors are focusing on Class C apartments, favoring neighborhoods that appeal to young adults.
* Forecast; ** Through 2Q
Sources: CoStar Group, Inc.; Real Capital Analytics; RealPage, Inc.