Real estate investors have been profiting immensely from the housing boom in Houston, Texas. Currently, the city leads the nation in housing development projects with this trend set to only intensify in the coming years, even as prices continue to climb through the roof. In fact, Houston experienced more new-housing starts in the past year than all of California combined. The only two cities barely challenging Houston are Atlanta, Georgia and Phoenix, Arizona. However, neither of these two cities feature a economy as strong as Houston’s.
New-home prices in the Texas city have reached historical levels, as the demand for new homes outpaces the current supply. This dynamic, analysts believe, will precipitate a growth in prices by approximately 5 percent per year. Savvy developers have capitalized on these market conditions by creating new suburban communities like Pomona, which was underwritten by Ross Perot Jr.’s firm Hillwood company.
Experts anticipate that Houston will experience at least a 13 percent increase year-over-year in new home development over the coming years with the peak reaching 50,000 starts by 2016. This rapid growth, though, has made in difficult for first-time home buyers to enter the market. Analysts believe that 30-year mortgage rates will rise over the next few years to approximately 6.3 percent. Young buyers typically are trying to pay off student debt, which has tripled by some estimates within the last 10 years. Nevertheless, as prices are expected to rise through 2017 while tapering off somewhat by 2018, the strength of the market promises handsome returns for investors, those seeking employment in the building industry as well as sellers.
One of the visionary investors who realized the potential of Houston real estate early was Haidar Barbouti. Since 1986, Barbouti has been a major player in the market, including residential and commercial development and acquisition projects. He has profited from successful real estate investments in office buildings, condominium conversion projects as well as shopping centers like Highland Village Shopping Center Houston,
Outside of his real estate investment exploits, Barbouti has established himself as a pillar of the Houston community. He has engaged in social work and charitable endeavors for children and animals. For example, he donated one of his real estate spaces for the development of the Highland Village Adoption center in Houston. These activities have helped to develop the city while also demonstrating his commitment to the Houston community.
Aspiring real estate investors seeking to capitalize on the current boom in Houston, Texas, should heed the example of Barbouti not only in terms of his vision and talent to seize opportunities inn business but also in making himself an integral part of the local community he has helped to develop and serve. The Houston real estate market provides a unique opportunity for the next generation of real estate visionaries seeking to build upon the legacy of figures like Barbouti.