Amid cities like New York with its expensive properties and Detroit with its deteriorating market, Houston is the newly emerging city in the US. With one of the most modest housing markets in the country, Houston is increasing its population fast. Houston’s tendency to flooding is the main reason for its affordable price ranges. According to a local, you can buy houses which cost more than your yearly earning to houses which are affordable to all classes in Houston as you go farther away from downtown.
According to the 2016 census, the population of Houston grew by about 10% between 2010 and 2016. The city is now ranked as the fourth largest city in the US. Houston ranked first in the Urban Land Institute’s yearly list, however, in the past few years, the sale went down, and in 2016, the city had fallen 29 ranks. The reason behind this was the slow economic rate growth in the city. The mid-year report stated that sales had gone up by 7.4% in 2017, but unfortunately, a great drop occurred in sales when Hurricane Harvey arrived in August. Despite the storm, sales still are higher by 1.6% compared to the previous year, driven by companies like i buy houses houston.
Even though it was thought that the hurricane would completely end the market in Houston for about a year or so, the market kept up its thriving business. In fact, according to some reports, the market increased due to the hurricane. Investors from all over the country are rushing into the city in hopes of buying flooded homes at low prices and then renovating them. Redfin reported that out of the 45 property buyers they had, only eight backed out after the hurricane while they had expected nearly all of them to back out.
Realtors found that people whose homes had been flooded due to the hurricane were still interested in buying property or renting it in Houston instead of moving away. As a result, house prices after Harvey went up by about 20%. People whose homes have been flooded are finding it hard to sell their property while houses which are elevated are now being bought rapidly. Homeowners in Houston, who realized that elevating their houses before selling would be profitable, are having a hard time buying supplies for rebuilding their homes.
A supply store manager admitted that before the storm, they were oversupplied, but now, they are facing a supply crunch. Due to these reasons, the prices of building materials are rocketing. Buyers are not concerned with the fact that their homes may get flooded, rather they are finding a way to elevate their homes so that future flooding doe does not affect them. A couple proudly proclaimed that they had signed a deal to sell their house a week before Hurricane Harvey came. The hurricane flooded their house, and they thought the deal would be over. However, they received a call from their buyers a week later who announced that flood or no flood, they meant to buy the property.
The real estate marketing has been affected in the following way after the storm. If your house has been flooded about three times, then its selling price shall be near the price of the land. However, if you have an elevated house, your house price is going to increase by about 18% as compared to its previous price.