Home sweet home

6 affordable Houston neighborhoods for first-time homebuyers in 2021

EaDo east downtown houston we love houston

EaDo presents a great inner-city value for new buyers.

Houston's cost of living is no doubt one of its most attractive features. Add in the city's energetic vibe, chic sophistication, and global diversity, and it's a place Houstonians are proud to call home.

For Newstonians, or those longtime locals who are looking to make a foray in to home ownership, the Bayou City boasts some of the best value in the nation. From emerging neighborhoods to expanding planned communities, from the suburbs to inside the Loop, opportunities abound.

CultureMap spoke to Harris Benson, a realtor with Douglas Elliman Texas, who works almost exclusively with first-time buyers. Benson shares the inside scoop on some of Houston's hottest neighborhoods for first-timers looking for a home.

Brays Oaks
Average home price: $253,984
Benson says this neighborhood has a lot of offer. While some of the area's newly constructed homes can hit the $500s, there are several options available in the lower- to mid-$200s range. Stretching from Brays Bayou down to the Beltway, encompassing parts of Fondren and South Gessner roads, it sits snugly against its Westbury neighbor.

"It's a large area," says Benson. "It's vibrant. It's culturally diverse. It's a community of people from all over." That's going to be attractive for anyone who loves Houston's international personality. One thing to note about Brays Oaks homes is that many were built in the 1950s and '60s, and designed in a ranch style with three bedrooms and two baths and typically average just under 2,000 square feet.

"The reason buyers love this are is because you can get a home with a little bit of charm and the yard space you might not be able to get elsewhere inside the city," Benson notes. Those looking for space and a mid-century feel should explore Brays Oaks.

Cypress
Average home price: $348,327
There's been an explosion of new development in this neighborhood northwest of Houston, straddling 290 above Highway 6. In the coming months alone, the Bridgeland community will add another 7,000 homes, as CultureMap reported. The Town Lake community has added restaurants and boasts beautiful outdoor spaces. Buying in Cypress means "first-time home buyers are able to buy in these large, master-planned communities to where you have all the amenities you ever need, not only within the community, but in the close-out area," says Benson. He points to excellent schools, a variety of restaurants, and necessities such as grocery stores and shopping centers.

East Downtown (EaDo)
Average home price: $291,630
Running along 59 and 45 highways, stretching into Houston's Second Ward, EaDo is "an interesting mixture of an established neighborhood while still being up and coming," Benson notes. He points to the East Village, the breweries and restaurants, and the Dynamo and Dash's home field and the ability to walk over to neighboring Minute Maid Park to catch an Astros game.

Last year, Lovett Commercial announced its Polk District project along Emancipation Avenue, which will bring a Sprouts Market, among other amenities, which Benson thinks will be "a game changer" for the area. Another big selling point for EaDo is that it offers easy access to the city, whether driving or walking. Housing stock is a blend of single-family homes and condo and townhome developments, offering buyers a range of styles to choose from.

Katy
Average home price: $394,961
This suburb west of Houston wins big when it comes to all the amenities families are looking for: great schools, lots of activities and outdoor space, excellent restaurants, even terrific health care options. And it continues to grow. "It's wild," says Benson. He cites the Young Ranch and Cane Island communities, among others, as offering first-time buyers new homes that offer a lot of bang for the buck.

"You get a new home and a community that is amenity-filled," he explains. Think three-and four-bedroom homes with huge backyards, lots of natural light, partially open floor plans, an enough room for a growing family. Those who are looking for a suburban lifestyle will find it here.

Pearland
Average home price: $314,566
"What's cool about Pearland is it's actually easy to get to town," says Benson. "You hope on 288 and it's easy access to the Medical Center. Or head up Almeda Road." He says the area offers great diversity, and a host of parks for outdoor recreation. "But the first thing I think of when I think of Pearland, is Killen's Barbecue," he says. "It's so good." Buyers can expect three- and four-bedroom houses, along with some new construction and communities, all of which offer something for every personality and budget.

Sugar Land
Average home price: $329,000
This suburb southwest of Houston off Highway 59 made the top five in a recent list of America's best small cities. Sugar Land combines close access to Houston's job centers, along with the vibrancy of being its own city. Benson points to entertainment and recreation options such as the Sugar Land Skeeters baseball team, concerts and events at the Smart Financial Center, along with the First Colony Mall, Sugar Land Town Square, and a branch of the Houston Museum of Natural Science.

"There's really a ton going on in Sugar Land," he says. "You get a little more bang for your buck" compared to other communities. First-time home buyers can choose from established planned communities or newer construction, and should expect homes designed with families in mind. They city's schools are highly rated, another plus for those looking to start or expand a family.

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Houston real estate expert shares 5 tips for first-time buyers

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Remember these key points before buying in the midst of this "bonanza."

As virtually everyone living in Houston right now knows, this real estate market is one of the hottest in the country.

In what's been described as a "buying bonanza," homes are for sale all over the region, which might have renters thinking it's time to jump on the home-ownership ladder.

Not so fast.

First-time buyers face real pitfalls. Jeremiah Jackson, retail sales manager for the the Houston market for real estate powerhouse Orchard, shares with CultureMap his advice on common mistakes to avoid when buying that initial home.

Financing first
"Get educated, and get educated early," Jackson tells CultureMap.

It might sound obvious, but financing forms the foundation for the home buying experience. Knowing what a bank will approve, how a buyer's savings lines up with other financing options, and where to go to see what's available will save countless headaches later on.

"Develop a relationship with a mortgage broker and let them educate you on the types of products," he says. "A broker actually brokers out to a bunch of different companies so they can run best rates. They can look at all the programs that are up to date and they can help educate you. I would also say, do some self education, too, online. You can go to the FHA website and learn about the types of loans they back."

Having financing in place gives buyers a better understanding of what they can and can't afford, which helps focus their options.

Understand the market
Jackson says one of the biggest mistakes he's seeing first-time buyers make right now is that they're misunderstanding the current Houston housing market.

"The current situation is that 34 percent of the home are selling at or above list price," he says. "So if you're going to make an offer in a home, you have to be aware that there's no deals to be had right now, to put it bluntly. It's, we're going in strong and we're going in high, and we're paying for a majority if not all of the closing costs to get a good property."

That's not only true of Houston, he notes. It's the same all over the country. Housing inventory is simply down, meaning there aren't enough homes out there for people who want to buy them. And while Houston has a slightly larger inventory than other cities, according to Jackson, available housing stock is scare here, too.

"Combine that with interest rates being so low, it's just the way the market is right now. It's the craziest it's been in 30 years or so," he says.

That means that buys should expect to pay more for homes, whether they are resale homes or new construction. Jackson says that his company works with buyers so that they have some room to move in terms of making an offer.

"We look at their financing, their pre-approval, their budget, and we start at the bottom end of it. If you got an approval for $400,000, that's your max. So, we'll look at homes in the $320s, the $330s, so you have that up side and we can go to that max amount if needed."

Get the right realtor
Many buyers might not realize that the right realtor can make all the difference. Jackson advises first-time buyers not to be afraid to interview several before deciding on who fits them best.

Buying a home can be a stressful experience and a realtor who is capable of shepherding buyers through it can cut down on whatever anxious moments might lie ahead. He says buyers should pay attention to how they click with an agent, since personality counts for a lot.

If a buyer's style is all business, they might not want a realtor who seems super-casual. Likewise, if a buyer wants a lot of handholding, a real estate agent who seems cool and distant might not be a good fit. And don't be afraid, he says, to set up expectations at the beginning of the process.

"[You can say] 'here's our communication expectation,'" he offers. "'We asked a question and we need a response within 15 minutes.'"

Neighborhood knowledge is crucial
Another important factor in finding the right agent: get one that specializes in a specific neighborhood. Houston is obviously a large metro area, and Houstonians know there is a huge difference between Clear Lake and Garden Oaks.

Jackson says having a realtor who understands the neighborhood is vital, because he or she will not only know about houses currently for sale, but will know the area's history in terms of amounts homes have sold for, as well as how the neighborhood has grown or changed over time.

Neighborhood knowledge is also useful in terms of what restaurants, grocery stores, or other amenities are there. Much of that can be found in an online search, but a Realtor who's plugged into the community will have concrete examples that help buyers visualize themselves in a certain geographic area.

Homework, homework, homework
Many buyers, especially those who are first-time home buyers, might be overwhelmed by the process. And while a great real estate agent can assist, Jackson wants buyers to know they have responsibilities, too.

"Be easy to work with as a buyer," he says. "Have your must-haves, but just be easy to work with and understand that there's going to be concessions back and forth instead of taking a hard line. Because when you take a hard line, and you're unwilling to give, that will translate to the listing agent saying, 'I don't know if we'll close because these guys are being unreasonable.'"

He recommends that buyers have conversations, whether as a family or a partners or spouses, about what they want in a home at the beginning of the buying process.

Some new home buyers, he says, aren't sure what they're looking for. That's where they can use the good agent they've selected to walk them through what they really want out of a home, a neighborhood, and their list of must-haves versus nice-to-haves in their new home.

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