Houston is hosting its annual Livestock Show and Rodeo, a proud tradition for almost 90 years that attracts tens of thousands of people a day in celebration of the region’s ranching tradition. The rodeo is just one of the many things that makes Houston a desirable place to live.
The area’s economy is thriving, anchored in a diverse set of growing industries. Houston remains the U.S. headquarters for a booming energy sector that is reshaping global energy markets. The city also is home to the largest medical complex in the world – the Texas Medical Center – which includes the world-renowned MD Anderson Cancer Treatment and Research Facility. In addition, Houston is an important industrial base – with manufacturing of more than $80 billion of products annually (number 2 in U.S. metros) and as home to world-class infrastructure including the number one foreign trading port in the U.S. by tonnage.
We at Invitation Homes are proud to have a presence in this flourishing city. Houston also illustrates a shift we see in other markets across the U.S. in which more and more Americans have decided to rent a single-family home than buy one, often because renting is the more affordable option.
More People in Houston Choosing to Rent
With more than 6 million residents in the metro area, Houston is the most populous city in Texas. That number has climbed steadily in recent years and reflects the trend of many Americans moving to the Lone Star State because of its thriving economy and affordable housing (the barbecue is an added plus). According to a U.S. Census Bureau list , six of the 15 fastest-growing cities in the U.S. are in Texas.
Houston also illustrates Americans’ growing appetite for single-family home rentals. Between 2007 and 2016, Houston added the second most single-family home rentals of any city in the country, trailing only Phoenix, another place where Invitation Homes is proud to operate. In total, the number of single-family rentals in Houston grew by 28,800 homes , a 39 percent increase, according to U.S. Census data compiled by RENTCafe. During the same period, multi-family rentals in the area grew by 23 percent. There are numerous reasons why people decide to rent rather than buy, one of which is affordability.
Leasing is Often the Most Affordable Option
Rising mortgage rates and escalating home prices made renting a home far more affordable than owning one last year, according to CNBC . In 2018, the monthly costs of owning a home were up 14 percent, according to Realtor.com, compared to 4 percent for renters. The Houston Chronicle recently reported that the cost of home ownership in Houston is rising faster than the cost of renting – and renters are recognizing the savings. The same piece points out that according to Freddie Mac, almost four out of five renters say that leasing is their most affordable option.
Houston Reflects a Growing Trend: More Americans are Leasing a Home
The trend of more people choosing to lease a home is not unique to Houston. Throughout the country, many American families are finding renting to be the best fit for them. This is true for young families looking for more space, families with older kids looking to upgrade schools, or retirees who want to downsize or move nearer to family. Researchers at Florida Atlantic University and Florida International University recently released a national study that shows renting is also a better way to build wealth. Renting and reinvesting the savings will, on average, outperform owning and building home equity, in terms of wealth creation. The study found that renting trumps buying in 16 of the country’s top 23 metropolitan areas, including Houston.
There’s no doubt that Houston is one of America’s great cities on the rise. Invitation Homes is proud to provide affordable housing to more than 2,300 Houston families. We are grateful to be part of a community that prides itself on celebrating both its historic connection to ranching and its thriving modern economy, and we look forward to continuing to serve Houston families for years to come.