While most of the city has returned to a state of normalcy, construction crews and contractors have been busy with a never ending demand for repairs. Although many homeowners and businesses are just now beginning to rebuild, much of the heavy trash has been collected and curb-side recycling has once again resumed service.
The post-Harvey real estate market has certainly been impacted, at least in the short-term, with market values either spiking or sinking depending on the neighborhood. Some homeowners decided to abandon their homes and instead move into apartments or purchase condominiums - which have experienced strong demand. Others are simply going to rebuild.
After analyzing fifty Houston neighborhoods, some interesting patterns emerged. Using data from the Houston Association of Realtors' Multiple Listing Service, the following trends were observed:
SALES VOLUME IS DOWN
When comparing ALL property subtypes, sales volume dropped 14% in September and October, compared to the first eight months of the year.
CONDO SALES ARE ON FIRE
Condominiums are the clear winners here. Both the median condo price and sales volume have jumped in September and October compared to 2016. New buyers are not only emerging from moves to the city, but also from Houstonians that have chosen to live in high-rise properties safe from the threat of flooding. Demand remains high.
RENTAL MARKETS HAVE COOLED OFF
Immediately after Harvey struck the city, apartments across the city saw their occupancy rates and effective rental rates spike. In fact, many were approving as many as fifteen residents per day. This eliminated many of the incentives being offered, such as three months free rent, waived application and administration fees or up-front cash incentives. Slowly, those incentives are starting to rebound as displaced residents move back into repaired homes.
MEDIAN PRICE OF HOMES BY NEIGHBORHOOD
Royal Oaks: 20.2%
River Oaks: 19.9%
Afton Oaks: 16.7%
Rice / Museum District: 14.6%
5th Ward / Downtown: 10%
Highland Village: 5.2%
Spring Branch: 1.2%
Memorial Villages: -17.2%
Rice Military: -8.8%
West University: -3.6%
Energy Corridor: -3.6%
Sources: Jen Para, Houston Business Journal | Paige Martin | HAR MLS Data