Skip to main content

Report: Houston 2nd Most Active Real Estate Market in the Nation Over Last Decade 

Published Mar 07, 2022 by A.J. Mistretta

Downtown BBVA Stadium

Metro Houston ranks second in the U.S. when it comes to real estate activity across commercial and residential sectors over the last 10 years, a recent report from StorageCafe shows. 

Houston was the most active single-family residential market in the country while the New York City metro saw the highest number of building permits issued for new apartments. 

Over the last decade, Houston logged: 

  • 392,136 single-family permits 
  • 170,817 multifamily (apartment) permits 
  • 44.3 million square feet of new office space 
  • 153.3 million square feet of new industrial space 
  • 51.9 million square feet of new retail space 
  • 17.5 million square feet of self-storage space 

The report looked at activity between 2012 and 2021 across the nation’s 50 largest markets. When all sectors are totaled up, Houston falls just behind Dallas which ranks No. 1 across all real estate sectors over the decade. 

According to StorageCafe: “Houston has been the primary destination for newcomers moving to Texas, especially Californians who find respite in Harris County’s lower home prices and tax rates, cheaper land and sound economy. A typical home in Harris County, for example, is 57% cheaper than in Los Angeles County (approximately $848,000 vs. $365,990) whereas the average annual pay is about the same (approx. $75,000 in Harris County and $73,000 in Los Angeles County).

StorageCafe data shows that the best year for single family homes in Houston was 2021, with over 52,000 units planned to be delivered, followed by 2020, with over 52,000 units. The metro area also permitted about 170,000 multifamily units over the past ten years, with 2014 peaking at around 25,000 units.

With more than 44 million square feet of office space built over the past decade, and new industrial construction surpassing 153 million square feet, signs are pointing to even more growth for Houston in the years ahead. “The historically oil-driven hotspot is slowly evolving into a hub for digital technology as well as manufacturing and life sciences,” StorageCafe indicated in its report. “Among the big players that announced new offices in the area in the past year are Hewlett Packard Enterprise, Avetta, Maddox Defense, Dominion Aesthetics Technologies Inc. and Roboze.” 

Learn more about metro Houston real estate and why businesses are choosing Houston

Related News

Economic Development

Talent Developers Have New Pipeline to Employers

7/25/22
Talent developers across greater Houston have a new tool to help them directly connect clients without bachelor’s degrees to employers specifically seeking to hire them. The tool, Stellarworx, is a robust talent marketplace designed exclusively for jobseekers Skilled Through Alternative Routes (STARs) – those other than a bachelor’s degree. Stellarworx is now available to help the Houston region’s 1.6 million STARs jobseekers join candidate pools for good jobs through a new collaboration between the nonprofit social enterprise organization Opportunity@Work, the American Petroleum Institute, Chevron, and the Partnership through its UpSkill Houston initiative. “We know that talent developers can struggle to identify players who are actively hiring STARs and spend months build relationships with employers and compete for a limited number of jobs available for STARs,” said Opportunity@Work’s Nicole Daniels in a recent meeting hosted by UpSkill Houston. “The employers on Stellarworx have chosen to come to us because they want to embrace skills-based hiring and they want to hire STARs, and they recognize the diverse skills and perspectives that STARs bring to the table.” STARs account for about 70 million workers nationwide (60 percent of the American workforce) and cut across all demographics and people groups, according to Opportunity@Work. They have developed skills employers seek and value through avenues including community college, military service, and on-the-job training, but are often screened out of talent searches because they do not hold a bachelor’s degree. Thanks to degree requirements used as proxies for skills – or what is called “the paper ceiling” – these workers only have access to about 26 percent of all new jobs created. The paper ceiling has long-lasting effects on workers’ earning power, as it takes a STAR 30 years to reach the wages of a recent college graduate.  Stellarworx is helping change this by providing talent developers an easier way to have their clients recognized by employers hiring for good jobs with good pay and opportunities for career advancement. All jobs posted on Stellarworx come with a minimum wage of $20 per hour, and they all must lead to a career pathway. The talent marketplace: Uses skills-based matching to identify employers and jobs best suited to enrolled STARs. Offers talent developers a one-stop-shop to aggregate labor market supply and demand information. Supports a healthy feedback loop between talent developers and employers to drive better client outcomes long term. Provides talent developers data and insights to track their clients’ career searches. The Stellarworx talent marketplace was launched in late 2020 is currently operating in three U.S. cities (and counting). More than 110 employers utilize the platform to find talent from its 2,100 talented STAR users. Opportunity@Work, which developed the platform, works to rewire the labor market open pathways for STARs to work, learn, and earn to their full potential.  “If they have the skills to do the job, they should be able to get the job,”  the organization’s Bridgette Gray said. Talent developers who are interested in learning more can contact Opportunity@Work’s Nicole Daniels directly at nicole@opportunityatwork.org.   Related: Recognizing Workforce STARs a Competitive Advantage The Partnership’s UpSkill Houston initiative works to strengthen the talent pipeline employers need to grow their businesses and to help all Houstonians build relevant skills and connect to good careers that increase their economic opportunity and mobility. Learn more.
Read More
Economic Development

Houston Earns Top Spot Globally for Cost of Living

7/20/22
Houston ranked No. 1 in the world for local purchasing power, making the city an affordable place to live, according to a new report from online publisher Visual Capitalist.  Purchasing power, a metric used to gauge the number of goods and services someone on an average salary can buy, has become increasingly important to consumers amid rising inflation. The report uses New York City as a benchmark due to its high cost of living to compare both purchasing power and cost of living, or the average day-to-day expenses incurred in a given community. According to the analysis, Houston’s local purchasing power is 73% greater than New York’s. Click to expand Houston’s cost of living is 36.1% lower than the Big Apple. Houston’s cost of living is 16% lower than Los Angeles’ cost of living index at 79.2. In comparison to international cities, Beijing’s cost of living falls 14.4% lower than Houston while Tokyo and London’s cost of living rate ranks 21.7% higher than Houston. Click to expand Patrick Jankowski, the Partnership’s Senior Vice President of Research, predicts consumers will continue to feel inflation well into the end of 2022 and into 2023. The Federal Reserve will meet later this month to discuss another interest rate hike in hopes of quelling inflation. There are hints that inflation may soon start to moderate due to recent dips in prices for corn, wheat, copper, lumber, oil and natural gas.   Learn more about living and working in Houston.
Read More

Related Events

Demography

Houston Facts

The Greater Houston Partnership's Research team will provide an overview of Houston Facts, an annual Partnership publication that provides information on the Houston region. For this event, each member of the…

Learn More
Learn More