We continue our series on the real estate investment market. Do you know which city booked out Sonny and Cher and the Beatles? It's the most ethnically diverse city in the United States. More people dine out in this city than any other city in the US. Today we are going to talk about Houston, Texas.

On our focused talk about Houston, we start off by listing industries and events which fuels and gives the Houston economy upturns and downturns: 

1. Oil
2. Shipping
3. Houston Medical Center
4. NASA
5. Storms
6. Zoning

Houston today has a 2.3 million population, and the population continues to grow. By the end of the next decade, 2040, Houston is predicted to have 10 million in population. Migrants, transient, and medical and oil industries keep this city moving and growing. 

Over 57% of residents rent, which gives this city a renter-friendly characteristic from an investor viewpoint. Many renters equate to a cash flow engine for investors. Real estate growth is 2.8%, a unique stat for a big city as there is more supply than demand. The consistent increase in home prices is still good as more people are moving into this area. There is a stability envelope with Houston because of the combination of these factors. The rent to price ratio in Houston is still suitable for investors and has positive cash flow. This is rare for a metro area, given that Houston is the fourth largest city in the US. 

Houston History

In 1836, two brothers bought land near Buffalo Bayou for $1.40 an acre and purchased over $6,000 acres. This was the starting point for the founding of Houston.

Oil was first discovered at Spindletop in 1901. Goose Creek and Humboldt followed suit with oil being found in both locations. The oil economy quickly grew and developed from this start. The 1940s brought refineries and the petrochemical industry. Fast forward to the 1970's many oil companies established themselves in Houston. Upstream and downstream economy starts to take effect. Now, Exxon has consolidated its headquarters in Houston, making Houston a large oil economy, perhaps the largest in the world. 

Texas Medical Institution started in 1943 and has continued to grow as one of the leading cancer research centers in the world. This has created a booming medical corridor for the medical industry.

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In This Episode:

[01:14] What’s special about Houston Texas and gives Houston its character.

[02:19] Current stats on Houston for real estate investors.

[03:06] Inventory growth in Houston for new real estate opportunities.

[05:01] Background and history on Houston, how industries rose and how Houston became a metro.

[05:54] Houston shipping industry collaboration and growth throughout the decades.

[07:01] NASA, earthquakes and the hurricane storm history of Houston. 

[08:33] Houston is unique in that the city has no zoning laws.