The good news if you're thinking of moving to Houston is that it's not Dallas. No big hair, no pollution, and help is there when you need it. "No one ever said, 'Dallas, we have a problem,'" says Angela Shah of Yahoo News. Houston is bigger, bolder and richer. In fact, Houstonians average a $4,000 higher per capita income than their neighbors to the north.
If you have to get sick, Houston is the best place to do it. The Texas Medical Center (largest on the planet) is standing by, waiting to serve you with 21 hospitals. If they can't figure out what's wrong with you, perhaps a scientist in one of TMC's eight research facilities will.
When oil prices started tanking in early 2015, nearly 12,000 Houston workers received pink slips. Other industries bear the brunt of this, and the city has seen layoffs elsewhere, such as in the hospitality and financial sectors.
That the job outlook in Houston is rosier than the national average, according to Manpower's Employment Outlook Survey, is good news for job seekers but small consolation to the pink-slipped. When the economy is humming, Houston is an amazing city for job hunting, with 26 Fortune 500 companies headquartered here.
Outdoor enthusiasts enjoy the fact that Houston boasts 49,643 acres of total park space, used for both community events and recreation. You'll even find seven dog parks right here in the city.
Walking the local parks' trails is likely the only time you'll want to hoof it in H-Town. Although Houston ranks high for walkability compared to other large cities in Texas, you will need a car when you move here. Otherwise, consider some of Houston's more walkable neighborhoods, such as The Heights, Highland Village or West University.
For those with wheels, Houston is their oyster when it comes to dining, entertainment and cultural pursuits. Home to a diverse dining scene, you'll find every cuisine from around the globe tempting you to leave the kitchen and dine out on the town.
Like any self-respecting large urban area, Houston has a plethora of entertainment offerings, including movies, comedy clubs, concerts, nightclubs, dive bars, family events and more. The city's museum district can eat an entire weekend with stops at the Holocaust Museum, the Buffalo Soldiers National Museum, Houston Museum of Natural Science and others.
One thing you can count on is that you'll have spectacular weather to do just about anything you want in Houston; the city enjoys warm, sunny weather almost year-round. Sure, it gets hot in the summer - an average high of 95 degrees Fahrenheit in August - but you'll rarely be subjected to extreme heat such as you'd find in Arizona. It is humid, however, and that takes some getting used to for many newcomers.
Q2 2015 Houston Rental Market Update
In Q2 2015, Houston was the fourth-best rental market in the Southwestern U.S. and 32nd-best in the country as a whole. Since Q1 2015, Houston jumped two spots in the Rental Ranking Report's regional rankings for the Southwestern U.S. and one spot in the national rankings.
The Houston rental real estate market is unfortunately far from perfect from the perspective of rental property owners. Houston's vacancy rate (7.90 percent) and capitalization rate (4.96) were much worse than their respective national averages in Q2 2015, 6.72 percent and 4.96 percent. Houston's low capitalization rate is particularly concerning as "cap rates" compare annual rents to property values and are one of the primary metrics used by rental real estate investors to gauge the attractiveness of rental properties. Given that Houston's average cap rate was 27 percent lower than the national average in Q2 2015, rental property investors are able to make much more profitable investments elsewhere.
Regardless, Houston rental real estate can still be lucrative. The Houston market's high annual rental price and property value appreciations (6.63 percent and 10.00 percent) are vastly greater than their respective national averages and "Space City" should therefore be of interest to any savvy rental property investor.
What data is this Rental Ranking Report based on?
To calculate the statistics found in the Q2 2015 Rental Ranking Report, All Property Management gathered data, including the most recent government housing and jobs data, for 75 metros across the United States. Specifically, we looked at home vacancy, capitalization, home value appreciation and job growth rates, changes in rental prices, and the average number of days properties have been on the market to determine which U.S. metros will give investors the highest returns on rental investments. Click here to learn more about the Rental Ranking metrics.
Should I invest in Houston rental property?
Thinking about renting out a property in Houston? Save time, avoid hassle and maximize your rental income by having a professional property management company operate your rental property for you. Click here to get a free quote from a local property manager or call 877-780-4510 to have the All Property Management staff get quotes for you.
All Property Management specializes in connecting rental property owners with professional property managers in communities across the United States. These property managers help set rental rates, advertise properties, screen and manage tenants, collect rent, manage vendor relationships and ensure compliance with local, state and federal housing regulations. They take the hassle and worry out of managing rental properties - all while maximizing rental property owners' rental incomes.