While Houston may have many nicknames that reflect the city’s culture (H-Town), climate (Bayou City), and chronology (Space City), Houston could also be called a “boom city” as it is also home to one of the fastest growing tech centers in the nation and to one of the most appealing markets for real estate investors. Why? Well, Houston has everything: the people, the diversity, the business climate, and a world-recognized center for energy, medicine, space, and manufacturing.
Located in Southeast Texas, Houston and is the most populous city in Texas, the fourth most populous city in the nation, and covers nearly 700 square miles – big enough to fit Washington D.C., San Francisco, New York, Boston, Seattle, Minneapolis and Miami all within its borders.
Sitting near the Gulf of Mexico, Houston also has a great waterfront history as well. For example, the Port of Houston ranks first in the United States in international waterborne tonnage (weight in tons) handled, and is recognized as a critical hub to the world’s commerce. Not so surprising, Houston is also home to nearly 50 Fortune 1000 companies, which is the second largest concentration of any other city in the country(behind only New York City with 72).
Top Five Reasons Kay Properties Likes the Houston Real Estate Market
In addition to the briefly stated areas above, Kay Properties & Investments likes the Houston market for the following reasons:
1. Rapid Population Growth
Greater Houston is one of the most diverse and rapidly growing major U.S. metropolitan areas in the nation. With a population of 7 million people, Houston is the largest city in the state of Texas, and the 4th most populous city in America.
With a thriving business culture that runs across just about every industry including fashion, sports, technology, energy, and education, the Houston real estate market is booming. According to Realtor.com, Houston’s real estate prices have risen more than 6% year-over-year for the past five years, and inventory has dropped nearly 25% in the past year.
2. Houston Real Estate Market Is Still Developing
Unlike fully-built cities like New York, San Francisco, Washington D.C. etc, Houston has lots of room to grow and develop. According to Houston’s central office of economic affairs, Houston’s moderately priced housing market combined with its sound business infrastructure makes the city a great place for investors who are looking for opportunities. From multifamily to industrial to residential, Houston continues to be an attractive market in which to invest.
3. Strong Economy and Job Growth
Anyone who understands real estate fundamentals gets that a strong economic base is critical to creating a good real estate market. The Houston market is one of the most important industrial bases in the world with the second largest manufacturing-based GDP in the nation, the world center for nearly every segment of the oil and gas industry, and home to the largest medical complex (Texas Medical Center) in the world. On top of these economic power houses, Houston also has more than 1,760 life sciences and biotechnology companies, cutting-edge hospitals, health facilities, and research institutions and 6,400 manufacturers who employ more than 240,000 skilled workers and produce $80 billion in goods annually.
Recent headlines abound with recently relocated corporations choosing Houston as their central location including the world’s largest online marketplace and fulfillment center that has absorbed more than 1 million-square-feet, and has eyes on another 3 million square feet in the near future. That’s approximately the size of 74 football fields!
Booming International Trade
Another strong appeal for real estate investors to Houston is the city’s reputation as an international trading hub. People have historically migrated to places of international trade and access to commerce, and Houston is no exception. For example, Houston has the largest US port as measured by total cargo tonnage handled, and one of the busiest ports in the United States when it comes to foreign trade. This level of activity translates into lots of jobs for the Houston market, as well as acting like a giant magnet for tens of thousands of business people and travelers from around the world. That means that these people need a place to stay in either temporary or permanent housing, which is why Houston is also a great market for investment real estate.
5. Education & Quality of Life
Quality of life and educational opportunities are other motivators that encourage people to migrate from one region to another. While much younger than some of its counterparts like Boston, New York and Chicago, Houston is one of the fastest growing big cities in the country. It continuously lures more and more residents from around the globe drawn by the city’s mix of cultural amenities, diverse communities and a low cost of living. Houstonians also take their dining very seriously which is a good thing since the city has more than 11,000 restaurants offering just about any type of cuisine imaginable. Some describe it as the perfect mix between Southern hospitality and urban sophistication, with tons of waterways and public parks to reinforce its reputation as a quality of life city.
Education is one of the major elements of quality of life. Houston boasts more than 40 colleges, universities, and institutions – offering higher education options to suit all interests. The Greater Houston area has 14 major institutions of higher learning including Baylor College of Medicine, University of Houston, and Rice University. According to U.S. News & World Report, the University of Houston has been ranked among the best colleges in the United States across a number of different categories in 2021 while University of Houston landed on the lists for “Top Public Schools” and “Best Value Schools” in the same report.
Where To Invest in The Houston Real Estate Market?
With a strong economic base, an internationally recognized commerce center, and a growing population, Houston is becoming an attractive city for real estate investors.
Kay Properties often has Delaware Statutory Trust (DST) offerings for both 1031 exchange and direct cash investors available in the Houston, TX market. To learn more about these and other DST investment opportunities available nationwide please visit www.kpi1031.com or call 1 (855) 875-2781
Kay Properties is a national Delaware Statutory Trust (DST) investment firm. The www.kpi1031.com platform provides access to the marketplace of DSTs from over 25 different sponsor companies, custom DSTs only available to Kay clients, independent advice on DST sponsor companies, full due diligence and vetting on each DST (typically 20-40 DSTs) and a DST secondary market. Kay Properties team members collectively have over 115 years of real estate experience, are licensed in all 50 states, and have participated in over $21 Billion of DST 1031 investments.
NOTE: Past performance does not guarantee future results and DST investments may result in a complete loss of investor principal. This is an example of the experience of one of our clients and may not be representative of the experience of other clients. These clients were not compensated for their testimonials. Please speak with your attorney and CPA before considering an investment.
Risks and Disclosures Please Read
This material does not constitute an offer to sell nor a solicitation of an offer to buy any security. Such offers can be made only by the confidential Private Placement Memorandum (the “Memorandum”). Please read the entire Memorandum paying special attention to the risk section prior investing. IRC Section 1031, IRC Section 1033 and IRC Section 721 are complex tax codes therefore you should consult your tax or legal professional for details regarding your situation. There are material risks associated with investing in real estate securities including illiquidity, vacancies, general market conditions and competition, lack of operating history, interest rate risks, general risks of owning/operating commercial and multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks and long hold periods. There is a risk of loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, potential returns and potential appreciation are not guaranteed. This material should not be interpreted as tax, legal, insurance or investment advice.. Securities offered through Growth Capital Services, member FINRA, SIPC, Office of Supervisory Jurisdiction located at 2093 Philadelphia Pike Suite 4196 Claymont, DE 19703.