Despite a banner year in construction permitting, Houston area rents and home prices continue to grow.
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While area housing prices are still well below those of other cities like San Francisco, the cost of housing in Houston has been steadily rising, reveals John Brannen of the Kinder Institute for Urban Research.
“The average home price in Houston last year was $413,657, and the median price of single-family homes increased by 12.8% to $338,295, according to the Houston Association of Realtors.” This is despite a 70 percent year-over-year increase in permits issued for multifamily construction, which, at 28,153 units, still lags behind single-family housing, which received 47,633 permits in 2022. If these preliminary figures are final, it would show the most permits issued in one year since 2006.
But “Despite the record number of permits in 2022, the amount of time between construction and occupancy can be unpredictable.” Brannen also explains that many Houston NIMBY groups fight proposals for affordable or multifamily housing in their neighborhoods, slowing down the process of building affordable housing. According to Bruce McClenny, senior director for ApartmentData.com, “There was a big focus on affordability going into the pandemic, and it seems like it was forgotten about.”
FULL STORY: Houston metro may have set a housing permit record in 2022, but affordability remains elusive
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