HOUSTON--(BUSINESS WIRE)--Houston real estate markets are benefitting from stronger than expected job growth indicated by newly revised economic statistics from the Texas Workforce Commission, according to Houston-based Deal Sikes & Associates, one of the state's leading real estate valuation and counseling firms.
In revised annual statistics, the state commission recently reported 62,900 jobs were created in Houston in 2017, significantly more than the workforce commission’s original estimate of 46,000 jobs.
“The improvements in the Houston economy provide a brisk tailwind for real estate in southeast Texas,” said Matthew Deal, principal of Deal Sikes & Associates. “Residential demand has strengthened. We see solid activity in both multifamily and single-family housing in Houston.”
Multifamily rental rates and occupancy rates increased last year, Deal said. “Multifamily construction will be increasing in 2018 as the market responds to the uptick in demand,” Deal said. “Apartment communities that were not inundated during the hurricane flooding last year are attracting investors who are willing to pay more for properties with a high-and-dry track record.”
All sectors of Houston’s real estate markets are showing improvement in 2018 as the region’s economic growth has returned, said Mark Sikes, principal of Deal Sikes & Associates.
“Home sales and single-family construction are strong. We expect to see strengthening residential prices in 2018,” Sikes said. “Across the board, the demand for land is healthy.
“Builders are seeking smaller sites for Inner Loop residential and boutique retail. In suburban areas, developers are actively acquiring land for industrial, distribution, retail and residential projects. Houston’s economic growth and jobs gains support this broad trend for stronger real estate values in the year ahead.
“The office market has been the weakest sector of Houston’s commercial real estate market,” Sikes said. “Over the last year, investors have been acquiring significant office properties. In the long-term, many of these investments will deliver strong returns as the market improves and values increase.”
Houston-based Deal Sikes & Associates provides valuation and counseling services for real estate companies, governmental agencies, municipalities, investors, law firms, school districts, hospitals, energy companies, hotels and other companies.