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Quiet Gold Mine: East Downtown Houston is Going Down

Here is the inside scoop about the east side of Houston just outside of downtown being torn down.

Let’s call it like it is, the east side is going through a major transition. Metro is moving toward putting a primary hub in the area which will more than likely intensify the transition that is already taking place. Just outside of downtown going east, which for the past twenty years has been primarily a low income Hispanic area, is now ripe with opportunity!

As we all well know, many inner loop areas are on the verge of a transition. However, the east side of downtown Houston is picking up steam, primarily due to the potential of a light rail hub being established within the area. Many sophisticated investors are quietly buying land to ultimately sell to builders who will then tear down old homes and build new town homes for more “yuppie living” close to the rail and downtown. Analysis of the past few years shows that the days on market for the area has been trending down while the prices have been trending up.

Finally, the biggest drivers of long-term housing demand are employment and population growth. The Dallas Fed is predicting Houston population growth to be annualized 1.5% over the next five years. This, in conjunction with the boom in oil and gas, causes a need for new employment in Houston. Then you will have a lot of new folks who will be living in Houston and close to downtown.

So the transition going on just outside of downtown Houston will be an interesting trend to watch unfold over the next several years. For those of you who are willing to work this area, it will surely pay off in commissions and good investment profits!

Cliff Pape
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