More Apartments Popping Up Inside Houston Loop Amid Home Unaffordability

Buying a home in the United States has long become an unattainable dream for most people, as the economy continues recovering from a combination of the COVID-19 pandemic, and the Biden Administration's economic failures. High interest rates, which go along with it, have not helped. So, as a result, more people have just been stuck renting apartments in their cities of choice, with that very much apparent in Houston.

Loads of new mid-rise and high-rise apartments are popping up inside the 610 loop. Roughly 18,000 new apartments were added last year in Houston. As homes remain unaffordable for most people, renting demand is ticking upward more. As anyone knows though living inside the loop is expensive as can be, and it is going up by the year.

Local real estate expert Dr. Ted Jones says the vacancy rate has trickled upward, and that is driving a bit of a price bump.

"We have 9.9 percent of apartments vacant, which is up from a 10-year average of 9.2 percent...but our rent prices keep going up," he says.

All told right now, Houston has about 25,000 apartments still set to be constructed. That makes sense, considering the population boom the city has seen recently.

We have a diverse economy which helps bring people here, and apartment expansion. But we also have another interesting factor working.

"Houston is very unique. If you live in the city limits, it is the largest city in America that has no planning or zoning. If you can build it, you build it," Dr. Jones says. "We are going to have a lot of inventory come online because we can build here."

It is one of many things that makes Houston so unique. You can have a school next to a shopping mall that is next to a warehouse. The economic diversity also brings plenty of demand.

The city has oil and gas, the space industry, the Port of Houston, and so many other professions that are attractive for younger people. All of it combined with make Houston an apartment hot spot in the next decade or so.

"Houston will be one of the major apartment growth markets the next five years. Jobs are everything to an economy...and we have more jobs in Houston now than any other time in history," says Dr. Jones.

Of course, he adds this is a great time to be a multi-family owner, or someone who is renting out units. Houston is also projected to double its growth in the next 20 years, which will bring more temporary homes to the area.