America's Bright Spot

Houston's real estate rebound: Home sales finish up in 2011 with seven straightmonths of gains

Houston’s housing market rebounded impressively in 2011 as the city registered a four percent gain for the year, according to annual totals released Tuesday by the Houston Association of Realtors (HAR).

The supply of homes for sale dropped sharply, further strengthening the local housing market. Only 42,083 properties were listed for sale at the end of 2011, down 14.1 percent from a year earlier.

"2011 ended on a very promising note," said Wayne Stroman, HAR chairman and President of Stroman Realty. “The key to sustaining that positive momentum in 2012 will be continued improvement in Houston's employment numbers."

It is the seventh consecutive month in which Houston home sales increased.

Another telling statistic was expressed in what the association calls “months inventory” — a measurement of how long it would take to deplete the current inventory of homes for sale based on sales activity in the prior 12 months. In Houston, it would take 5.8 months to completely sell off all of the homes for sale — a 20-percent improvement over the last year.

During the recent economic downturn in some hard hit parts of the country, there was over a year’s supply of homes for sale.

The HAR said home sales in December were up 7.2 percent over December of 2010. It was the seventh consecutive month in which home sales increased.

Despite the improvement, home prices are not showing significant gains. The median price of a Houston home sold in 2011 was $155,000, up 0.7 percent over the median home price in 2010. The median price is the midpoint representing that half the homes sold for more and half for less.

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bang for your buck

These are the 6 most affordable ZIP codes for Houston renters

Facebook / City of Bellaire, Texas

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Trying to afford buying a home in Houston is difficult enough with current mortgage rates, and doubly so if you're already paying high rent on an apartment or a house. But there are six Houston ZIP codes where renters can get the most bang for their buck, according to a new study by financial services company CashNetUSA.

To find the most affordable ZIP codes to rent in the U.S., analysts compared median household incomes by ZIP code to the average annual rent costs using the Zillow Observed Rent Index. ZIP codes where the average annual rental costs required the lowest percentage of median household income were considered the "most affordable."

Two Houston-area ZIP codes specifically stood out in CashNetUSA's ranking of the most affordable ZIP codes for renters in America: 77401 in Bellaire (No. 9) and 77094 in the Energy Corridor (No. 12).

According to the study's findings, the average monthly cost of a rental in Bellaire comes out to $2,401.25, and the median annual income of a Bellaire household is $210,577. Analysts then calculated that the annual rent of a home in the Bellaire ZIP code only takes up 13.68 percent of a household's median income, which is the ninth-lowest in the nation.

But as Houstonians know all too well, Bellaire residents aren't exactly struggling to pay their rent, seeing as they live in one of the wealthiest places in America.

Meanwhile in Houston's 77094 ZIP, annual rent costs only represent 13.88 percent of a household's median annual income. The area – which encompasses the Kingsland Estates, Green Trails, Green Trails Oaks, Windsor Park Estates, Windsor Park Lakes, and Barker neighborhoods – has a median household income of over $168,000, and average rent costs add up to $1,944.58, according to the study.

CashNetUSA found the No. 1 most affordable ZIP code for renters nationwide is 66224 in Leawood, Kansas, where annual rent only takes a 10.57 percent cut out of a household's median annual income.

Elsewhere in Texas, San Antonio's 78248 ZIP ranked as the No. 4 most affordable ZIP code for renters in the U.S., and the No. 1 most affordable ZIP code statewide. The North Texas ZIP code 75013 in Allen ranked two spots behind Houston to claim the No. 14 spot nationally.

The most affordable Houston ZIP codes for renters
CashNetUSA further unveiled the five most affordable ZIP codes across major U.S. cities, including in Houston, Austin, and San Antonio.

Following 77094 (which took the No. 1 spot citywide) is 77008 (No. 2), which spans Greater Heights, Houston Heights, Shady Acres, and Lazybrook/Timbergrove. Rent costs in this ZIP code averaged out to $1,856 per month, the report found.

Landing in the No. 3 spot is 77024, which includes four of Houston's historic Memorial Villages, including Hedwig, Bunker Hill, Hunters Creek, and Piney Point. The report said average rent in the area comes out to $1,730 per month, which takes up 16.88 percent of a household's median annual income.

The remaining top two most affordable ZIP codes for Houston renters are located in 77007 (Washington Avenue Coalition/Memorial Park, Rice Military, and Crestwood/Glen Cove) and 77345 in Kingwood, which is about 30 miles north of downtown Houston.