Houston Real Estate Market Analysis [December 2021]

2021 Houston rental and sale property statistics. Report evaluating the best zip codes and neighborhoods in Houston for buyers, sellers, and investors.

Buying, selling, and investing  in Houston requires a firm grasp of the underlying factors driving the prices of homes and rents. This report features information about Houston home prices, Houston rental prices, growth rates of populations and incomes, as well as, rental yields. Using this data you can ensure that you're getting a good deal in Houston.

By: Awning

2021 Houston Property Trends

  • Harris County had the most high rental yield zip codes available to real estate investors. 10 over 9.5% rental yield.
  • Liberty (77575) had the highest rental yield overall in all of Houston at 11%.
  • Galveston (77554) had the lowest rental yield at 3.9%.
  • The 5 least expensive neighborhoods to rent in are Northshore, Eastex - Jensen, East Houston, Greater OST / South Union, and Kashmere Gardens. All with median rents for a 3 Bedroom home of under $1350.
  • The 5 most expensive neighborhoods to rent in are Greenway / Upper Kirby, University Place, Greater Uptown, Afton Oaks / River Oaks, Midtown. All with median rents over $3,100 for a 3 Bedroom apartment.
  • The least expensive 3 bedroom homes are located in East Houston, Greater OST / South Union, Northshore, and IAH Airport. All of these neighborhoods have listing prices for 3 bedroom homes under $165,000.
  • The most expensive neighborhoods to purchase a 3 bedroom home include University Place, Greenway / Upper Kirby, Greater Uptown, Afton Oaks / River Oaks, and Midtown. With median home prices at $599,000 and higher.
  • Liberty County is projected to have the fastest income growth with Dayton, Liberty, and Cleveland all expected to grow by 12% or more.

Houston Property Data (Google Sheet)

Houston Real Estate Statistics

  • Median rental yield: 8.3%
  • Rental yield range: 3.9% to 11%
  • Median 3 BR Listing Price: $242,450
  • 3 BR Listing Price Range: $149,990 to $837,450
  • Median 3 BR Rent: $1,670
  • 3 BR Rent Range: $1,280 to $3,640
  • Median Household Income: $54,151
  • Household Income Range: $26,303 to $169,170
  • Median Population Growth: 3.12%
  • Population Growth Range: -3.3% to 38.9%
  • Median Income Growth: 9.58%
  • Income Growth Range: 9% to 14%

Methodology

  • We use 3 bedroom homes. Smaller homes tend to have tenants who move more frequently (since they're occupied less often by families with school age children) and larger homes are often unnecessarily large for most families, making it take longer to find tenants for them.
  • We only look at Houston area zip codes with populations over 10,000 people to remove outliers / zip codes with very limited inventory.
  • We included 145 zip codes that made up the Houston MSA from Harris, Liberty, Wharton, Galveston, Waller, Walker, Matagorda, and Brazoria Counties.

Legend & Data Sources

Rental Yield: Annualized median 3 bedroom rent, from the last 6 months, divided by the median 3 bedroom listing price, from the last 6 months. (Source: Awning proprietary rent data + Awning analysis of Houston MLS data)

Median Listing Price, 3 Bedroom: Median 3 bedroom listing price, from the last 6 months. (Source: Awning analysis of Houston MLS data)

Median Rent, 3 Bedroom: Annualized median 3 bedroom rent, from the last 6 months. (Source: Awning proprietary rent data)

Population: Number of individuals living in the zip code. (Source: US Census)

Median Household Income: Median household income of the zip code. (Source: US Bureau of Labor Statistics)

Projected Population Growth: Expected population growth of the zip code over the next 5 years. (Source: US Census)

Projected Income Growth: Expected household income growth of the zip code over the next 5 years. (Source: US Bureau of Labor Statistics)

About Awning: Real Estate Investing Powered by Data & Local Expertise

About Awning

Awning is a platform that helps individuals find, buy, and manage the best single family rental homes on the market. Awning provides this service by analyzing every listing on the market to surface the best investment opportunities at any point in time and pairing its customers with expert real estate agents, known as Awning Advisors, who help customers through the process of identifying the best strategy & markets for them.

About this report

For this report, Awning has used its proprietary data to determine which Houston zip codes have the best yield for rental property investors. Awning brings additional color to the story with the help of Houston local Humberto Marquez, who is Awning's most expert Texas agent.

Awning is a licensed real estate broker in California (DRE#02120175), Florida, and Texas. TREC Information About Brokerage Services.

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