Year-Over-Year Rent Price Analysis
The subject of today’s snapshot is Inner Loop, Houston, Texas. Based on our analysis, Inner Loop Houston's year-over-year average rents increased across all bedroom types.
Our standard neighborhood analysis uses a 6-month “LookBack” to establish an average baseline rent. The results from the 6-month LookBack analysis are presented in the tables below for Houston 1–2 bedroom rents from March 1, 2021 – March 1, 2022:
As the table shows, 1BR increased by 7% from last year or $101 more, and the 2BR units increased by 6% from last year or $130 more. As demonstrated by the table, year-over-year performance for Houston saw no significant change in rent prices.
Market Activity: Houston, Texas
Are you interested in investing in Houston, Texas? Location is an important factor to consider when finding a profitable market for a rental property. The key characteristics of a good location include a strong economy, a growing labor force, and high rental demand. Below are some quick facts about the Houston rental market that can help you with your investment analysis and overall decision.
- Price-to-Rent Ratio
- Avg 2BR House Price: $392,023 (According to Redfin)
- Avg Annual 2BR Rent: $25,728 ($2,144 x 12 months)
- Price-to-Rent Ratio: 15
- Population Growth:
- Houston’s population increased by 10% over the last decade from 2010-2022 (According to US Census)
- Major Companies & Institutions:
- Occidental Petroleum, ConocoPhillips, Bracewell, ENGIE North America, Schlumberger, GE Packaged Power, Sysco, Halliburton, Quanta Services, KBR, Men’s Wearhouse
- Employment Growth:
- Houston’s employment growth increased by 3% from January 2021-January 2022 (According to US Bureau of Labor Statistics)
Rentometer is the #1 tool for comparing residential rent rates anywhere in the U.S. To succeed as a real estate investor, you need solid, current market intelligence to help you set the right rent rates in Houston. Understanding local rents (and the factors that drive them) can help reduce investment risk, increase occupancy and improve your cash flow – and income. With Rentometer, you have local, current rents available right at your fingertips.
This article was written by the Rentometer Content Team. The Rentometer Blog features fresh takes and insights on rental housing topics, services, and technology.