- Houston appears set up for an uptick in home sales activity
- A large wave of multifamily development has resulted in rents outpacing home prices
- The market's median home price is affordable when comparing it to other large metros
A recent ranking suggests Houston should be a top market for millennial homebuyers moving forward.
According to a report from Trulia, it is 46 percent cheaper for “younger buyers” to purchase a home versus rent in Houston. This home buying vs. rent differential is the best in the nation, when eyeing the 30 largest metros. It is also significantly better than the national average, 23 percent cheaper to buy than rent.
Trulia also claims that buying a home in Houston makes more sense now then in September 2012 – when the housing market began its turnaround. At that time it was 44 percent cheaper for a millennial to buy a home versus rent.
Buying makes more sense than renting in H-town because rents are outpacing home prices. Houston, since at least 2013, has been among the leading markets nationally when it comes to multifamily project starts.
Data from Trulia points to median rents sitting at $1,550 in September. During the same month the median home price reached $162,784.
When determining the best markets to buy versus rent, Trulia assumed a 30-year fixed rate mortgage with a 20 percent down payment for households moving every seven years.