Is there a reason for houses being so affordable in Houston area?

Asked by Anastasiya Citac, 77531 Mon Dec 3, 2012

My husband and I are from Twin Cities, MN. We came here for my hubby's job, and have been living in Houston area for about 9 months. We are looking to buy a house in Pearland, and are just wondering why is it that one can get so much for let's say $150K? A similar price range in Twin Cities would get us either a townhome or a fixer-upper, but nothing big, nice, or move-in ready like the houses we're seeing here. What's the catch?

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Stephanie Ba…, Agent, Houston, TX
Mon Dec 3, 2012

All of the notes thus far have great and valid points. Supply and demand will be the biggest driving factor of any real estate market whether located up north or here in the south. People continue to move to and from Houston with the number 1 driving factor being industries and jobs, much like your own situation.

Foreclosures have definitely had an effect on some of the larger subdivisions that peaked with new home sales and prices around 2007. However, we have seen the market stabilize in those areas and have noted prices to be recovering. Sales activity and buyer interest never really slowed versus other parts of the country.

While the Inner Loop of Houston has prices that will more closely mirror the Twin Cities due to limited supply and high demand, the suburbs continue to grow and therefore stabilize that equation. The typical appreciation for Pearland is between 2-5% historically on average. Pearland is a very large city/area with continued growth.

Also worth considering is that property taxes in Pearland may be higher than the norm up north at 2.7%-3.7% currently. Pearland, as part of Brazoria County also requires Wind Insurance. So, while we definitley don't consider these items as negative as they make the area such a great place to live and help to contribute to our highly sought after school district, it is important to consider as part of the bigger picture on your budget.

The best way to better understand the local market would be a tour of homes of interest to you once you reach that point in your timeline.

I specialize in Pearland and the surrounding neighborhoods and would love the opportunity to work with you when you're ready. I do participate in many employer relocation programs as well if that is part of your plan.

Stephanie Suttle
Better Homes and Gardens Real Estate
Pearland, Friendswood and Bay Area
Direct: 713.383.8672
0 votes
Bonita Gillis…, Agent, Houston, TX
Mon Dec 3, 2012
Demand will drive supply and create market prices. Houston is no exception, however, for the state of Texas owning also means your property taxes contribute to the tax pool revenue. Development is largely encouraged, and today's builders are smart about pricing to the market. When shopping, think location, as long, congested commutes can certainly affect the quality of life. Position your location close to your central commuting destinations, and you will have more time to enjoy those more important things living in the area has to offer! If you would like help in the Pearland area, please feel free to contact me directly at 713.402.8571 cell. Bonita Gillis @ Realty Associates Pearland
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Sabrina Ash, Agent, Houston, TX
Mon Dec 3, 2012
Despite the recession, housing has remained pretty stable in the Houston Area. There are still foreclosures and short sales, but there is also a ton of new construction being built. If you are interested in receiving more information on any home in Houston or the surrounding areas, please let me know. I am a relocation specialist and help folks moving in and out of town. Feel free to search my up-to-date listings of area homes, and if you have determined the criteria of of your next home, I will be happy to send you customized listings.

Happy Hunting!
Sabrina Ash
Coldwell Banker - Pearland
0 votes
Anastasiya C…, Renter, 77531
Mon Dec 3, 2012
Thank you for your input. So, the housing prices here don't have to do with air pollution, climate, insects, people leaving area, foreclosures, none of that, right?
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Thomas Johns…, , Houston, TX
Mon Dec 3, 2012
Housing prices in Houston are not impaired by oppressive zonig which increases the available supply of lots for builders. Construction costs are kept in check because there are no unions driving up labor costs for the builders.
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Kathy Gray, , Pearland, TX
Mon Dec 3, 2012

As you can see by the notes below -- we are just in a great market/economy here in the South. We consider ourselves very lucky. I live in Pearland and would be happy to assist you in finding a home. I can set you up on a routine e-mail listing giving you the homes available to your specifications. Just send me an e-mail to

Kathy Gray
832 455 3008
Realty Associates - Pearland
0 votes
, ,
Mon Dec 3, 2012
We hear this from people all of the time.....
Texas is affordable. We have lots of land to build on so supply/demand doesn't drive up prices.

Now, Real Estate is 'local'.... So there can be many factors for price/ft and I suggest you ask a local Buyer's Representative about your market.

I can refer you to a good one there. Done many smooth deals with her.
Patricia Rockaway
(281) 344-7363

She works the Pearland and surrounding areas.

Tom Burris
Mortgage Banker
(214) 763-4629 cell/text/nights/weekends(Really!!)
Lending all across the entire Great State of Texas!!
NMLS# 335055
Search Dallas area MLS for FREE. No registration =>
0 votes
Faye Ausmus, Agent, Pearland, TX
Mon Dec 3, 2012
Houston has always been more competitive in the housing, and you have generally been able to buy more house for your money than most places in the United State. There is a very large work force and the materials are easily accessible, therefore creating more competitive pricing for labor and materials.
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