Houston has strong population growth, a robust job market, and a large percentage of renter-occupied households—three factors that every real estate investor looks for.
Over the past 10 years, a quarter of the population growth in the entire state of Texas has occurred in the Greater Houston Area, while the region has recovered over 87% of the total jobs lost during the pandemic. Housing inventory in Houston is down to just a 1.4-month supply, the second lowest level on record.
The region’s strong job market, affordable cost of living, and countless amenities are attracting more people to Houston, keeping the demand for rental property strong.
We recently looked at Houston neighborhoods with great investment properties.
Key takeaways
- Houston spans over 10,000 square miles and is home to more than 7.1 million residents in nearly 90 neighborhoods.
- In popular neighborhoods like Greater Uptown and Alief, more people rent than own homes.
- Neighborhoods like Willowbrook have relatively affordable home prices along with a large percentage of renter-occupied households.
>>Explore Roofstock's Houston investment properties.
Why invest in Houston?
Home sales and single-family home prices are still surging in Houston, helping to drive the demand for rental property. According to the most recent report from the Greater Houston Partnership (January 2022), sales activity is up 9.3% year over year, while the median price of a single-family home in Houston has increased by 41.6% over the past 5 years.
Rent prices in Houston keep rising as well. The median rent for 3-bedroom homes in Houston has increased by 14% over the past year (Feb. 2022 vs. Feb. 2021), with 52% of the households in the metro area occupied by renters, based on the most recent research from Zumper.
15 great areas in Houston for investment properties
The Greater Houston area is more than 10,000 square miles in size and home to over 7.1 million residents. In a city this large, there are so many potential investment opportunities that it can be difficult to know where to begin. To make the search a bit easier, we looked at data from Realtor.com (Jan. 2022), Niche.com, and Redfin (Dec. 2021).
Greater Heights
Located just north of Houston, along I-45, Greater Heights has a dense suburban feel. Niche.com ranks it as one of the best neighborhoods in Houston, giving it an overall A+ grade:
- Population: 46,810
- Median sale price: $532,500
- Change in sales price (year over year): 2.4%
- Days on market: 30
- Median rent: $1,382
- Renter-occupied households: 38%
- Median household income: $115,530
- ZIP codes: 77007, 77008, 77009
Greater Uptown
The Greater Uptown neighborhood is just west of Downtown, adjacent to I-610 and Memorial Park. More than half of the residents here rent their homes, and the neighborhood receives an A+ rating from Niche.com:
- Population: 59,416
- Median sale price: $366,300
- Change in sales price (year over year): 13.6%
- Days on market: 62
- Median rent: $1,517
- Renter-occupied households: 55%
- Median household income: $117,934
- ZIP code: 77056
Memorial
Niche.com ranks the Memorial neighborhood as the best in Houston, with another A+ rating. Located west of Downtown, along I-10, the neighborhood has a mixed urban-suburban feel and a good percentage of renters:
- Population: 54,840
- Median sale price: $544,150
- Change in sales price (year over year): -5.7%
- Days on market: 41
- Median rent: $1,746
- Renter-occupied households: 40%
- Median household income: $126,540
- ZIP codes: 77007, 77079, 77055, 77056
Alief
Alief is located west of Downtown, just south of Houston’s Energy Corridor. The neighborhood has a mixed urban-suburban feel, and, even though home prices here are relatively affordable, more than half of the residents rent their homes:
- Population: 137,030
- Median sale price: $200,000
- Change in sales price (year over year): 23.1%
- Days on market: 16
- Median rent: $1,121
- Renter-occupied households: 52%
- Median household income: $47,639
- ZIP codes: 77411, 77099, 77072
Washington Avenue-Memorial Park
Located just northwest of Downtown, Washington Avenue-Memorial Park is bordered by the park on the west and I-10 on the north. Niche.com ranks the neighborhood as the third best in Houston, and it has a vibrant urban feel:
- Population: 36,163
- Median sale price: $442,750
- Change in sales price (year over year): 4.8%
- Days on market: 44
- Median rent: $1,935
- Renter-occupied households: 48%
- Median household income: $131,810
- ZIP codes: 77007, 77024
Neartown-Montrose
The Neartown-Montrose neighborhood is located north of the Texas Medical Center and west of Downtown. Residents like the neighborhood’s urban feel, and it has a high percentage of renters:
- Population: 33,811
- Median sale price: $555,000
- Change in sales price (year over year): -6.7%
- Days on market: 61
- Median rent: $1,511
- Renter-occupied households: 59%
- Median household income: $99,054
- ZIP codes: 77002, 77006
Fourth Ward
Located north of the Midtown neighborhood and adjacent to Downtown, Fourth Ward has an urban feel and a large percentage of renters. The neighborhood receives another A+ rating from Niche.com:
- Population: 6,456
- Median sale price: $349,950
- Change in sales price (year over year): 6.0%
- Days on market: 32
- Median rent: $1,438
- Renter-occupied households: 70%
- Median household income: $68,822
- ZIP code: 77019
Museum Park
The Museum Park neighborhood is adjacent to the Houston Zoo/Japanese Garden and immediately south of the Midtown neighborhood. Museum Park has a dense urban feel and a high percentage of renter-occupied households:
- Population: 8,023
- Median sale price: $417,500
- Change in sales price (year over year): 3.9%
- Days on market: 61
- Median rent: $1,794
- Renter-occupied households: 73%
- Median household income: $72,596
- ZIP codes: 77004, 77005, 77006
Midtown
Located north of Museum Park and south of Fourth Ward, the Midtown neighborhood has an urban feel and is ranked by Niche.com as one of the best neighborhoods in the city:
- Population: 15,216
- Median home value: $323,900
- Change in sales price (year over year): -7.3%
- Days on market: 36
- Median rent: $1,404
- Renter-occupied households: 76%
- Median household income: $77,677
- ZIP codes: 77002, 77004, 77006
Greenway-Upper Kirby Area
The Greenway-Upper Kirby Area neighborhood is another area with more renters than homeowners. It’s located west of Downtown and south of Memorial Park:
- Population: 29,043
- Median sale price: $555,500
- Change in sales price (year over year): -3.4%
- Days on market: 61
- Median rent: $1,671
- Renter-occupied households: 73%
- Median household income: $107,683
- ZIP codes: 77005, 77027, 77046, 77081
Eldridge-West Oaks
The Eldridge-West Oaks neighborhood is located in suburban Houston, a few minutes west of the city. Eldridge-West Oaks is popular with socially active professionals, has a mixed urban-suburban feel, and has a large percentage of renter-occupied households:
- Population: 99,392
- Median sale price: $287,750
- Change in sales price (year over year): 6.2%
- Days on market: 31
- Median rent: $1,491
- Renter-occupied households: 61%
- Median household income: $81,927
- ZIP codes: 77077, 77082, 77094
Willowbrook
Willowbrook is located northwest of the city, has a mixed urban-suburban feel, and has more renters than homeowners:
- Population: 22,777
- Median sale price: $210,000
- Change in sales price (year over year): 21.7%
- Days on market: 15
- Median rent: $1,190
- Renter-occupied households: 62%
- Median household income: $53,448
- ZIP code: 77064
Stafford
Stafford is a suburban neighborhood located west of the city near the Alief neighborhood. The area has a mixed urban-suburban feel, and more than half of the residents rent their homes:
- Population: 17,206
- Median sale price: $270,375
- Change in sales price (year over year): 10.1%
- Days on market: 9
- Median rent: $1,222
- Renter-occupied households: 52%
- Median household income: $62,264
- ZIP codes: 77477, 77497
Westbury
The suburban Westbury neighborhood is located along Highway 90, a few minutes southwest of Downtown. Westbury has a dense suburban feel:
- Population: 26,194
- Median sale price: $318,000
- Change in sales price (year over year): 15.4%
- Days on market: 49
- Median rent: $1,160
- Renter-occupied households: 37%
- Median household income: $74,323
- ZIP codes: 77096, 77035
Briar Forest
Located west of the city, near the Energy Corridor and along I-10, Briar Forest is a suburban neighborhood. It has a mixed urban-suburban feel and more renters than homeowners:
- Population: 43,518
- Median sale price: $349,450
- Change in sales price (year over year): -2.9%
- Days on market: 39
- Median rent: $1,367
- Renter-occupied households: 54%
- Median household income: $85,293
- ZIP codes: 77042, 77077
>>Explore Roofstock's Houston investment properties.
