Home Buying in Houston>Question Details

Trulia, Other/Just Looking in San Francisco, CA

What areas in Houston are likely to appreciate in the next 5 years?

Asked by Trulia, San Francisco, CA Fri Mar 9, 2012

What potential local factors could contribute to this appreciation?

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Hello Trulia!

Values going up and down in housing are effected by so many factors. The big ones that are easier to monitor include business activity in an area and inventory of homes for sale.

Houston has been on the top, or near the top, of many list nationally in 2011 regarding job growth and low unemployment numbers. Home inventories, up for the last few years, have been decreasing in most areas across Houston. A 6 month inventory is considered "balanced" and we are at those numbers in many neighbors across Houston.

Houston's appreciation numbers, in general, have historically gone step-by-step with the rate of inflation since the 1990s. There are always areas that do better or worst, and Realtors cannot predict the future, but very recent trends tend to help us point buyers in the right direction. We never see huge growth spurts as we viewed in California, Arizona and Florida because we have lots of land to build on and cost to build are lower here.

I always tell buyers that there is more to buying a home than the appreciation of the value. You also gain by the forced savings (paying the landlord..yourself), tax deductions, value increase by improvements you provide and the values hard to explain like being part of a community and a place to raise a family.

Don't put all your "investment" dollars into real estate. Diversify your nest egg, but include your home and possibly a few rental homes, along with other investment options. And nothing would improve you position than having a home paid for as you get older. When your looking, get with a local experienced Realtor to help you find those "perfect" neighborhoods.

Mark McNitt
Bernstein Realty
m# 832-567-4357
1 vote Thank Flag Link Fri Mar 9, 2012
The attached link is a great tool for looking at a neighborhood's performance. Markets are VERY local even to the neighborhood. The Houston Chronicle puts out an awesome market report down to EVERY neighborhood in April. Or, you can contact a realtor that has lived and worked in Houston their whole life and knows the communities that have done well ;) I could link you a dozen but it wouldn't likely match what you are looking for in a community. We have everything from 1920-30s bungalows to gated townhomes to quiet suburbans that do well.

David Tansey
Keller Williams Memorial
(281) 635-4895

1 vote Thank Flag Link Fri Mar 9, 2012
Most of Houston will appreciate. However, the inner loop in my opinion will have great appreciation because of centricity. Houston continues to provide a strong job market and multiple areas (North side, West Energy Corridor, Southwest, Southeast, Galleria, and downtown). Bottom line is there will be numerous opportunities in Houston. The inner loop provides that central location with less traffic going to and from work, bringing more flexibility to the individual. The key is working closely with your Realtor in providing the market insight.

Roberto "Omar" Peña
Fine Homes & Estates Int’l. LLC
Web Reference: http://www.har.com/opena
1 vote Thank Flag Link Fri Mar 9, 2012
Might as well put in my 2 cents worth. I believe the West Houston/Katy area will continue its' boom. South of Innerstate 10 and north of Westheimer, FM 1093. due to the excellent Katy Schools and the Energy Corridor. The projections for 2012 show that there has been fewer building permits, therefore this will initiate a shortage of houses, which will drive the prices of resale homes up. This is already happening my neighborhood, Green Trails and the westside of Houston and Katy.
1 vote Thank Flag Link Fri Mar 9, 2012
The area of town that will appreciate in value in the future would be a lot of areas of town. But most likely the Northside of Houston, close to the Woodlands and Spring & Cypress. Exxon Oil company is opening in that area, where it will have over 10,000 people looking for new homes. They have already started freeway construction add-ons & an outlet mall & shopping. That area is growing at a very fast rate. Also, the inner-loop will also appreciate, because it is very close to town. The best thing to do is to ask your Realtor to do a Market Analysis on a neighborhood that you are interested in. They will be able to tell you if that neighborhood or area is going up in value or down in value. It is really hard thing to guess what the future will bring. But it's great that there are Realtors that can give you a Market Analysis of today's market.
1 vote Thank Flag Link Fri Mar 9, 2012
The crystal ball always has some clouds in it, but the overall Houston market has potential for Great Growth. Major industry startups, relocations and City government incentives will drive families to Houston and vicinity. South west Fort Bend is exploding and the Infrastructure planning is going forward for the next 20 years already. With the Grand parkway(99) going full steam,the connectivity from I-45 to 59 will drive a huge growth pattern in the northwest and I feel that Waller,Montgomery will get the largest increase due to the lower prices now and opportunity to get in at the beginning. Areas to the north, Woodlands will always be expanding just as it has happened north of Dallas.We are in the right place at the right time.
Web Reference: http://www.har.com/garyplee
1 vote Thank Flag Link Fri Mar 9, 2012
Although certain geographic areas at the perimeter of the Greater Houston marketplace will very likely increase in value and should see positive appreciation in property values, consideration should be given to other factors as well -- Where are you working, is drive time important, quality of schools, amenities, etc.
Historically, the inner loop and near loop areas have seen consistent, and sometimes remarkable appreciation over the last 5 to 10 years. More importantly, even with the slowdown in the real estate market in very recent years, properties in the closer in areas did not see devaluations occur like other areas did. With gasoline prices projected to continue to rise, the demand - therefore the prices - of homes closer to major employment centers is very likely to continue to accelerate values. Find a Realtor with experience in the areas you are considering. Best of luck to you!
Web Reference: http://har.com/patadams
1 vote Thank Flag Link Fri Mar 9, 2012
I believe the Northwest areas of Cypress and Tomball are going to become prime locations for growth and development. The demand for homes will increase with the development of the Exxon facility in The Woodlands and the construction of the Grand Parkway which will connect the Cypress and Tomball areas to The Woodlands making these communities very accessible.

Margie Johnson
Prudential Gary Greene
1 vote Thank Flag Link Fri Mar 9, 2012
The better question might be.. what areas will NOT appreciate(?). Houston never did "balloon" like some other parts of the country. So, really, most of Houston will likely see increases.
0 votes Thank Flag Link Fri Mar 9, 2012
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