Time to Buy. Sellers Market. Sky High Rents. Much has been made recently (this blog, the Chron) about the tightening housing supply in the Houston area, as well as a growing number of markets nationwide. In the past Metrostudy Report has touched on how the “Rent vs Buy” ratio already favors buying a home if you’re renting a single-family home or Class-A apartment. That’s truer now than when that post first went live back in May of 2012. In fact, Class-B apartments have even moved within striking distance of becoming a “buy” scenario for the consumer. Class-A and Class-B apartment designations are different for each market so I’ve included market averages as of the end of 2012 according to Apartment Data Services, our trusted friends in apartment market commentary.
In Houston, housing has always been relatively affordable due to the availability of land. If you translate the above monthly rent payments into the principal and interest (P&I) payments on a home mortgage, you’ll find that those monthly payments will buy you a good amount of home in the Greater Houston market. For the purpose of this post I collected pictures of a variety of floor plans priced at $200,000. This price point seemed ideal for those consumers choosing between renting an apartment or buying a home. If you calculate the monthly P&I payment on a $200,000 loan with a 3.5% interest rate, you arrive at $898.09. This total falls right between the market averages of the above listed rents, and below those Class-A and Class-B averages of the apartment developments inside Loop 610. The following homes are from a variety of builders in the Houston area with a diverse product offering near this price point. ENJOY THE VIEW.
The Frisco: Available around Houston, 2510 sqft, 4 bedrooms, 2.5 bathrooms
The Cheyenne: Available in NW Houston, 2091 sqft, 3 bedrooms, 2 bathrooms
The Oakdale: Available in SE Hosuton, 2361 sqft, 4 bedrooms, 3.5 bathrooms TaylorMorrison
The Capri: Available in SW Houston, 2385 sqft, 3 bedrooms, 2 bathrooms Beazer Homes
Bridgeland Model: Available in NW Houston, 2328 sqft, 4 bedrooms, 2.5 bathrooms DR Horton
The Milan: Available in NE Houston, 1904 sqft, 2 bedrooms, 3.5 bathrooms Brighton Homes
The Granbury: Available in NE Houston, 2460 sqft, 4 bedrooms, 2.5 bathrooms
The Garner II: Available in NE Houston, 3094 sqft, 5 bedrooms, 3.5 bathrooms Legend Homes
A Special Thanks to the Participating Builders (in order of appearance): Ryland Homes, Ashton Woods Homes, TaylorMorrison, Beazer Homes, DR Horton, Brighton Homes, David Weekley Homes, Legend Homes