Texas Multi-Family Housing Q&A with Caroline and Kerry
An article earlier this month in The Dallas Morning News outlined how Texas enjoyed almost twice the economic impact from development in 2020 compared to other top states. The paper cited a recent report by the Commercial Real Estate Development Association (NAIOP). And that’s despite the pandemic. It translated in to $65 billion for the Texas economy and supported more than 428,000 jobs in the state – many here in Houston.
There’s an obvious link between commercial development and multi-family housing (MFH). But that link even more evident here in Houston due to a relaxed approach to zoning, our city’s sheer size, vast geographic expanse, etc. It a sort of Texas “Two Step” in many ways -- commercial builders continue on even in the midst of a global pandemic, while the residential builders can offer a big assist by putting people near new commercial endeavors. A win-win.
Houston serves as one of our country’s best examples of entrepreneurial, inspirational can-do determination, with MFH both benefiting and assisting in the process. That growth and success of the commercial real estate sector has a direct trickle-down effect to MFH development. As commercial areas expand, the need for quality housing options organically arise.
So while the commercial areas are indeed getting larger, the residential space of those who seek MFH also sees better options at a more affordable price than they would find in other communities
And while investors or investment teams oversee or evaluate the commercial space, they also seek to provide the multi-family home needs of the future residents of the community. Channel 2 recently reported some serious news of note this past weekend highlighting that Houston’s housing market has ballooned over the past decade. MFH demand accompanies that growth and shares in all of the many benefits to the economy.
Of the Lone Star State’s largest Texas metro areas, Houston’s housing market isn’t the most valuable (The Dallas-Fort Worth Metropolitan area holds that distinction) but it did see the largest total increase in value during the pandemic: The Dallas-Fort Worth housing market is worth $625 billion, up $38 billion in value in 2020; Austin’s housing market is worth $264 billion, up $27 billion in value; and San Antonio’s housing market is worth $167 billion, up $9 billion in value.”
Investments have a great future but making sure you have a knowledgeable and seasoned property management company and a good multi-family real estate advisory team is of the utmost importance. With the influx of out-of-state companies relocating to Texas and specifically investing in the Houston area, especially the technology companies that have announced of late, opportunity is the reason and many industries can rely on Houston’s unique ability to perpetuate that.
Here are some helpful links to Houston zoning: