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Houston Named a Top Real Estate Prospect in New Survey

Published Nov 09, 2023 by Hailea Schultz

Skyline Resized

Houston has again solidified its position as a top real estate prospect, according to a new survey. 

Climbing up three spots from last year, the Bayou City ranks No. 11 out of 80 cities on the top real estate markets to watch list from The Urban Land Institute and PwC. The list is part of the duo’s broader annual report – Emerging Trends in Real Estate in 2024.

The report examines the many factors currently affecting the real estate market, including the possibility of a recession and rising interest rates, lack of demand for office space due to remote/hybrid work, affordability and the emergence of artificial intelligence.

Houston's office and multifamily real estate sectors are currently facing challenges common to urban centers. According to the Partnership's findings, Q3 witnessed a notable negative net absorption of 855,533 square feet in the office space category. Additionally, the Partnership identified sluggish absorption rates, stagnant to negative rent growth and overbuilding in the multifamily market

Despite the slowdown, Houston remains a leading real estate market thanks in part to its housing affordability and the resurgence of its retail market.

Stabilized by the fall of home sales, Houston’s housing costs are the second most affordable among the most populous U.S. metros at 18.4 percent below the national average, according to data from the C2ER Cost of Living Index

Increased demand for retail space due to the return of conventional, in-person shopping post-pandemic has buoyed Houston’s retail market. Over the past 12 months, it absorbed 3.2 million square feet and, as of Q3, has 4.7 million square feet of retail space underway, according to data from the Partnership’s quarterly update on the retail market.

In addition to this ranking, Houston comes in at No. 7 in a separate list in the report of leading markets for homebuilding, benefitting from strong population and job growth. 

These rankings exemplify Houston’s resiliency and strength, further bolstering its position as a leading real estate market.

View the latest data on Houston’s real estate market

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