Best Neighborhoods in Houston to Invest in Real Estate

Neighbourhoods in Houston – Anyone looking to invest in Houston right now needs to understand that it’s a competitive, fast-moving market. You need all the advantages you can gather, and one of those advantages is an expert firm in the local area. We consult with private investors on choosing properties, preparing them for the market, and then maximizing returns during the hold period.

Choosing the right neighborhood is a huge part of any successful investment strategy to reap the gains of appreciation. 

Benefits of Investing in Houston Real Estate

Best Neighborhoods in Houston to Invest – Houston has long been an ideal place for new and experienced investors. It attracts local investors as well as out-of-state investors and international investors. Lately, it’s become even more attractive because of the strength of the local economy, the growing population, and the relatively low acquisition costs as compared to other major metropolitan markets. Houston is the fourth largest metroplex in the country and home to a continuous migration of jobs in energy, medicine, manufacturing and technology.

The local rental market is strong, and the economy is creating jobs in a diverse number of sectors and industries. Smart investors know this leads to a great tenant pool and stable rental incomes. 

Additional reasons Houston is an attractive place to invest in rental real estate include:

• Increasing population

The current population of Houston metropolis is 7.1 million people, growing at a rate of 10.68% over the last 10 years; the city is among the top 5 most populous cities in the USA. Furthermore, this trend is expected to keep increasing in the future.

• Prosperity

There’s also a lot of money in Houston. The oil industry earns millions, and most of that revenue stays in the local market, making it one of the richest cities in Texas and even throughout the U.S. 

In addition, according to the Greater Houston Partnership’s economic trends for the Houston region, the city is expected to add approximately 35,000 to 52,000 jobs in 2021 in the administrative support services, health care, manufacturing, and professional services sectors.

• Quality of life

There are always opportunities for business, employment, education, and entertainment in Houston. People come here to learn, to work, to enjoy professional sports and take advantage of the attractive climate. Statistics have shown that Houston ranks second as cities most searched when it comes to rental housing.

Texas is also a landlord-friendly state, where owners are not hampered by rent control or strict eviction laws. It’s also advantageous for investors focused on cash flow and equity growth.

Target Neighborhoods for Houston Investors 

Neighbourhoods in Houston – There are a number of diverse and profitable rental markets throughout Houston. The best neighborhood for any investor will depend on their unique investment goals. 

Two specific neighborhoods in Houston get our attention every time at HNB Realty. These are growing areas that have high-quality, attractive housing and appeal to high earning renters who are looking for an established neighborhood in which they can raise families, work hard, and become part of the community. 

• First is, East Downtown

East Downtown, or East End, is one of Houston’s most vibrant and diverse neighborhoods, attracting residential and commercial opportunities galore. Located in close proximity to Houston’s employment hubs such as Downtown, the Houston Ship Channel, and the Texas Medical Center.

Previously the home of Houston’s Chinatown, East Downtown is undergoing massive reinvention, and is now a hotspot of commercial and residential development. Over the last 10 years, investors have invested over $250 million in East Downtown, building the MetroRail, BBVA stadium and the George R. Brown Convention Center.   It is one of Houston’s most accessible neighborhoods and the real estate market here has performed consistently well over the past 5- and 10-year periods.

Some popular subdivisions in this area include Eastwood, the Theater District, the Skyline District, and the Historic District. EaDo is also one of the most ‘walkable’ neighbourhoods in Houston, with parks like the Discovery Green, the Emancipation Park, and the EaDog park.  This contributes to a high quality of life, especially for people who enjoy being active and outdoors. 

It’s also appealing to tenants. Young professionals are moving in rapidly as well as families and professionals relocating from international locations. This creates a lively, diverse, and exceptional area for investors to focus. It checks off nearly every must-have on a real estate investor’s list.

• Next, consider Greater Heights 

Another great neighborhood for investors in Houston is Greater Heights, which is also called The Heights. It’s trendy and eclectic and attractive to tenants who favor a walkable area with a lot of art and culture immediately available. Downtown is not too far away and the opportunities for nightlife abound.

This is a modern suburb north of Highway 10 and west of Interstate 45. Commuters will also have an easy time getting to Hardy Toll Road. This community is popular with professionals who work downtown, and it’s also easy to reach any of the northern suburbs. The schools are ranked well, and it’s consistently been named one of the best places to buy investment property in Houston. 

Right now, Greater Heights is a competitive market, and the demand for homes here is far outpacing the supply. The median rental value of a home in Greater Heights is just under $2,500 per month. Investors can expect this to go up, especially as the economy and the market continues to adjust after the pandemic slowdown. 

Additional Houston Neighborhoods for Investors to Consider 

Neighbourhoods in Houston – Both the University Medical Center and Greater Heights neighborhoods have a lot of promise for investors looking to earn some outstanding cash flow and long term ROI. However, they are competitive, and it may take some patience and some creative strategies to find the right opportunity and acquire the perfect investment property. 

Additional neighborhoods in Houston that provide outstanding opportunities for investors can also be found. Here’s a quick snapshot of where to look:

• West University Place

West University Place is one of the best neighborhoods in the inner ring in Houston. Located within the Houston-Sugar Land metropolitan area and southwestern Harris County, it has one of the highest property appreciation rates in real estate investing. According to statistics, the home values in West University Place have increased by 3.7/%, making it a very attractive option for investors looking for rental properties. With excellent schools, well-maintained and green homes, and proximity to downtown Houstin, West University offers a high quality of life.

• Midtown

Close to major employers and commuting routes, Midtown makes sense for investors looking for a stable tenant pool and a great, central location. The neighborhood is full of coffee shops, restaurants, bars, and some of the best shopping in Houston. Tenants like living close to the most important districts in their city, and they’re willing to pay for the walkability that’s provided in the Midtown area. Millennial tenants and recent retirees are two tenant demographics that prefer walkable neighborhoods over areas that require cars. It’s an investment opportunity worth paying attention to. 

• Gridiron

Investors looking for suburban single-family rental home investments in Houston will want to check out the Gridiron neighborhood, often locally referred to as the Medical Center neighborhood. Several universities are close by, and it’s a major hub for hospitals, healthcare companies, and of course, the Texas Medical Center. Tenants tend to be in the healthcare field or education. Investors will find reasonably priced duplexes and homes that make excellent rental properties. Higher rents and a more stable tenant pool make this an outstanding community for investments. There’s low crime, great schools, and a serene, community feel.