HOUSTON – (Realty News Report) – With Dallas-Fort Worth ranked No. 1 in the nation, Houston is a real estate market on the rise and “has it all” as cited in the investment market rankings of Emerging Trends in Real Estate 2019 by PwC and the Urban Land Institute.
Houston posted No. 37 of 79 U.S. cities, which is a big improvement from the city’s No. 60 ranking last year. Seems there may be more confidence in the Houston market since the energy industry has rebounded. Low zoning, available capital, low cost of living and an above-average local economic outlook marked Houston as attractive for development. The city is in the top 20 for investment in the office sector and matches San Francisco as the third highest metro area for real estate investment sales from outside the U.S.
“The main concern about Houston is that the city could experience disruptions in international trade due to the impact of recent tariffs, although this is not yet visible in the metrics,” said Robert Kramp, director of research and analysis at CBRE’s Texas-Oklahoma division. “International trade through the Port of Houston has steadily expanded during the recent economic recovery, with a reported six percent growth for the first half of 2018.”
Texas’ three other markets rocked the list with Dallas/Fort Worth taking the top spot, up from No. 5 in 2018. The report cites the Metroplex’s young highly skilled workforce and robust business startup activity as key measures.
“Investors regard DFW as a metro with strong future economic potential and also the liquidity of gateway markets, such as New York City, San Francisco, Boston and Los Angeles,” said Kramp.
In terms of overall real estate prospects, Austin ranked No. 6, down from No. 2 in 2018. Investors like Austin’s projected population growth in 2019-expected to be three times higher than the rest of the nation. The city’s homebuilding prospects jumped to No. 3, from No. 25 this year, because of demand and the work flex-space trend.
San Antonio ranked No. 20, down from No. 18, because of rising costs of housing accompanying a nationwide increase in construction costs. The Alamo City’s development and redevelopment opportunities ranked No. 3 citing the need for more modern facilities. Frost Tower, under construction in downtown San Antonio and 63 percent preleased, is the first new office building since 1989 and will deliver 462,000 SF to the market in March 2019.
The Top Ten markets in the 2019 Emerging Trends report: (1) Dallas-Fort Worth. (2) Brooklyn. (3) Raleigh-Durham. (4) Orlando. (5) Nashville. (6) Austin. (7) Boston. (8) Denver. (9) Charlotte. (10) Tampa.