In this new decade, many experts predict a shakeup in the Houston real estate market. From home listings and sales to rental options and hot neighborhoods, real estate experts have fascinating predictions for Houston in 2020.
Here’s a look at the top three predictions for the Houston rental and real estate market in the coming year and what that could mean for Houston renters.1
Prediction 1: Houston Transplants Will Be Renting More Than Buying.
Job growth in the Houston area is expected to continue in 2020. With that comes more people relocating to Houston, and these new transplants will be far more likely to be renting Houston apartments and condos, instead of buying homes.
Why?
Experts say that people will be looking to take fewer risks in the Houston real estate market in the New Year. They expect more people will be looking for Houston rentals and apartments because of uncertainties like the:
- Ongoing trade tensions with China
- Looming potential of rising interest rates
- 2020 presidential election
The good news for renters is that there will be no shortage of Houston apartments available in 2020. In fact, about 17,000 new units are expected to be available in Houston in 2020—that’s up roughly 2,000 units from the 15,000 new Houston apartments that opened up in 2019.2
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Prediction 2: Prospective Sellers Will Be More Apt to Rent Their Homes, Rather Than Putting Them on the Market.
Houston saw a seller’s market dominate the scene in 2019. That’s expected to slow down or even reverse in 2020. According to experts, the slowdown will largely be the result of buyers growing increasingly cautious in 2020, as noted in the previous prediction.
And that means:
- Sellers will likely have a harder time commanding premium prices for their properties.
- Homes are expected to sit on the market for longer periods.
In light of these expectations, experts believe Houston homeowners will be far more likely to rent out their homes, instead of trying to sell them, in 2020.
Again, that’s good news for anyone who’ll be looking for a Houston rental in the New Year because it’ll likely mean more options, especially in the Houston suburbs.
Prediction 3: Houston Will Have Many Hot Communities for Renters.
In 2020, experts believe the hottest areas for Houston rentals and apartments will be:
- Larger master-planned communities: This includes developments in areas like (but not limited to) Katy, Richmond, Sugar Land, and The Woodlands. These areas generally saw strong land value appreciation in 2019. They’re also popular because of their prime locations and top-rated schools.
- Areas where job growth is particularly strong: The Texas Medical Center (TMC) is a local leader when it comes to job creation in 2020 and the coming years. In fact, local health care jobs in and around TMC are expected to double over the next decade. That makes the TMC, as well as areas with good MetroRail access to TMC, a hot spot for Houston rentals and apartments in the New Year and beyond.
- Areas popular among Millennials: Houston Heights (The Heights) and East Downtown (EaDo) are especially attractive to 20-something renters. That’s generally because apartments in these areas put younger renters close to all of the action while offering some of the latest and greatest amenities around.
Only time will tell whether any of these expert predictions will come true in the New Year. Regardless of whether the experts are right, here are a couple of things you can count on in 2020:
- Houston apartments and rentals will continue being in high demand in the New Year and beyond.
- The best way to find the perfect Houston apartment for your needs and budget is to work with one of the area’s most trusted rental agencies, Apartment GURUS.
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1: Expert predictions for the Houston real estate market in 2020
2: According to a report from the Houston Chronicle