I attended an economic forecast last week, and was surprised to learn that 39.4% of Houstonians are Renters. Ted C. Jones, Ph.D., Chief Economist – Senior Vice President, Stewart Title Guaranty Company, clarified that Houston has a young population that lives with their parents when they finish college, then move to a rental. This young population will eventually buy, so we could see a demand for first time home buyers in the next 5-10 years.
In the meantime, Rentals remain a strong market in Houston. I woke up to a morning announcer the same week stating that Houston has more renters than ever this year. Perhaps, all of the apartment developers knew what they were doing and we will see all of the vacancies fill up in the next few years.
I am keeping a watchful eye on the market with everything going on in Iran and China that could continue to drive oil prices down. Fortunately, every one has to have a place to live, and Houston’s economy is not solely reliant on oil. Buyers are cautious right now, but they are still out there.