Houston is one of the fastest-growing major cities in the U.S., and with a metro area that is bigger than the state of New Jersey, it has room to grow. With 2.2 million residents, Houston is the fourth most populated city in the United States. It’s the largest city in the South and the Southwest and it attracts a wonderful mix of arts, business, pro-sports, and award-winning cuisine. Houston is known for its mild, year-round temperatures and has a lot of culture-filled neighborhoods, gallery spaces, and attractions such as the famous The Lyndon B. Johnson Space Center where human spaceflight training, research, and flight control are conducted. There are also 25 companies on the Fortune 500 list that are located in The Energy Capital of the World, as Houston is known. Houstonians also take barbecue pretty seriously and are known for some big-name BBQ joints as well some no-frill, hole-in-the-wall places.
But let’s talk about real estate trends in Houston considering Texas is quickly becoming the most moved to-state in the US next to Florida according to Life Storage Blog. The blog also notes that living in Houston is much more affordable than many other large cities across the country. All things considered, Houston’s cost of living is very reasonable, but it does fluctuate based on several factors, including where you live, where you shop and what you enjoy doing to occupy your time. In a city like Houston, living close to work can save you money on gas and commute time, but might cost you more in living expenses. Movoto says as the population grows in Houston, so does the younger crowd. The median age in Houston is now 33 and according to Metrodepth, the Real estate market predictions for Houston suggest that home prices will likely continue to rise through 2019. Supply is a big part of the outlook. The Houston housing market is still experiencing a shortage of inventory relative to the demand from buyers in the market because unemployment rates in Houston are down tremendously. As of 2019, the unemployment rate is close to 3.7%. Since low unemployment and housing markets typically go hand in hand, inventory is also low. Metrodepth also reports that according to a January 2019 report from the Houston Association of REALTORS® (HAR), the average home price in Houston rose to $306,314 in December 2018. That was an increase of 4.7% from a year earlier. The median price for a single-family home rose 3.4% to land at $240,000 in December.
Sharestates has formed many relationships with builders in Houston over the years, and recently funded a handful of exciting properties. The first property is located in a neighborhood called River Oaks. This is a residential neighborhood that is located in a very central part of Houston. This area was named one of the most expensive neighborhoods in Houston. The median home price is over $2.5M. River Oaks has its own police force and River Oaks elementary school was ranked best in Houston.
This property is a 4 bedroom, 5 bathroom house that is a little over 5,000 square feet. Rehab consisted of a new roof, demolition, electrical work, plumbing, new kitchen, and bathroom cabinets, all new appliances and much more.
- Loan Amount: $2,660,000
- Loan Type: Purchase
- Property Type: Residential
- Rehab Budget: $370,700
- LTV: 77%
- LTC: 79%
- ARV: 65%
This next property is a commercial property located in the heart of the business district of Houston very close to Minute Maid Park (home of the World Series championship team, the Houston Astros). Property rehab included drywall, appliances, countertops, and interior paint.
- Loan Amount: $1,950,000
- Loan Type: Refinance
- Property Type: Commercial
- Rehab Budget: $53,500
- LTV: 65%
- LTC: 62%
- ARV: 63%
The next property is located in an area called Memorial Village. Memorial Village is made up of 6 small villages each with its own independent charm. This property was a complete “fix & flip”. The total rehab budget was over $500K. Rehab included demolition, a new kitchen, painting, new HVAC system, water & sewer system, drywall & spackle, roofing, and much more.
- Loan Amount: $1,800,000
- Loan Type: Refinance
- Property Type: Residential
- Rehab Budget: $535,000
- LTV: 71%
- LTC: 110%
- ARV: 64%
For more information on properties we have funded or for more information about our loan programs click below.
