Houston, Texas is the fourth largest city in the United States and is known for its diverse culture, booming economy, and vibrant nightlife. But what about house hacking in Houston? Is it a good market for house hacking or should you be looking at another option?
In this post, we’ll take a look at the six demographic data points we use to analyze a market, the house hacking strategies that might work well in this market, and whether Houston is in a landlord or tenant-friendly state. We’ll also provide you with all the information you need to decide if house hacking in Houston is the right decision for you.
Houston: Tenant Friendly, or Landlord Friendly?
Houston, Texas is a state that tends to be landlord-friendly. There are few restrictions on security deposits, and the eviction process is relatively quick. Additionally, Texas does not have laws allowing tenants to make repairs and deduct it from rent or withhold rent for any reason.
Houston does not add any major laws or regulations to change this, following the state guidelines on such matters, which means Houston should be considered a very landlord friendly city.
That being said, Houston does have some tenant-friendly laws, such as the Texas Property Code, which requires landlords to provide tenants with a written notice before entering the property, and the Texas Fair Housing Act, which prohibits discrimination against tenants based on race, color, religion, sex, national origin, familial status, or disability.
Overall, Houston is a landlord-friendly city, but it does have some tenant-friendly laws that should be taken into consideration when deciding whether to invest in real estate in the area.
Houston Demographic Data Analysis
Using the six demographic benchmarks for analyzing a real estate market, we’ll take a look at how Houston compares against the basic benchmarks that we use to determine whether a market is good for investing in real estate in general and house hacking in particular.
When it comes to these six metrics, this is how Houston compares to our benchmarks:
| Data Point | Benchmark (since 2000) | Houston |
|---|---|---|
| Population Growth | 20% | 15.7% |
| Income Growth | 30% | 34% |
| Property Value Growth | 40% | 188% |
| Crime Level | < 500 | 561 |
| Crime Change | 0% or declining | 6% |
| Job Growth | > 1% | 3.5% |
Overall, Houston has potential for a house hack based on the 6 demographics we use to analyze the markets, hitting the benchmark on 4 out of 6.
The city has seen strong population growth, income growth, and property value growth, and the job growth is also positive.
The crime level is higher than the benchmark and the crime change is positive, both of which are not good signs.
Overall, the numbers suggest that Houston can be a good market for a house hack, but you should be cautious of purchasing in neighborhoods with higher crime rates.
3 Strategies for House Hacking In Houston, Texas
Houston is a great city for house hacking because of its relatively low cost of living and abundance of rental properties. With a population of over 2 million people, there are plenty of opportunities to find a great house hack in Houston.
Here are 3 top strategies for house hacking Houston.
Look for Multi-Family Properties
Multi-family properties are a great way to house hack in Houston. These properties can be duplexes, triplexes, or even larger multi-family homes. The advantage of these properties is that you can rent out the other units to cover your mortgage payments, and potentially even generate a positive cash flow.
These properties can be found in many different neighborhoods in Houston, so it’s important to do your research and find the right one for you.
It’s also important to consider the potential for appreciation when looking at multi-family properties. If the property is in an up-and-coming neighborhood, it could be a great investment for the future.
Take Advantage of Low-Cost Housing
Houston is known for its low cost of living, and this can be a great advantage for house hackers. There are plenty of low-cost housing options in Houston, from single-family homes to apartments and condos.
These properties can be found in many different neighborhoods, so it’s important to do your research and find the right one for you. It’s also important to consider the potential for appreciation when looking at low-cost housing.
If the property is in an up-and-coming neighborhood, it could be a great investment for the future.
Look for Fixer-Uppers
Houston is full of fixer-uppers, and these can be a great way to house hack. The advantage of these properties is that they can be purchased for a lower price, and then renovated to increase the value of the property.
Neighborhoods for House Hacking in Houston
Houston is a large city with many different neighborhoods, each with its own unique character and charm. When looking for the best neighborhoods in Houston, it is important to consider factors such as safety, affordability, and access to amenities.
The suburbs of Houston offer a variety of options for house hacking, with many of them boasting low crime rates and a variety of amenities. These areas are often more affordable than the city center, and they provide easy access to the city’s attractions.
Best Houston Neighborhoods to House Hack
- Montrose
- The Heights
- Midtown
- Rice Military
- East Downtown
Worst Houston Neighborhoods to House Hack
- Sunnyside
- Third Ward
- Sharpstown
- Gulfton
- Fifth Ward
House Hacking in Houston: Should You Do It?
Houston is a great city for house hacking, with a variety of neighborhoods to choose from. The suburbs offer low crime rates and access to amenities, while the sleeper communities provide great potential for house hacking at an affordable price. The city has seen strong population growth, income growth, and property value growth, and the job growth is also positive. With its landlord-friendly laws and tenant-friendly regulations, Houston is an ideal city for house hacking.
