2024 Real Estate Roundup
A neighborhood guide to some of Houston’s hottest markets
Will it be a good year for real estate?
by David Michael Young
That’s the most common question I have heard from consumers as we headed into 2024. The answer changes day to day based on interest rates, inflation, unemployment and so many other factors, but so far has been positive – 2024 should be a good year for real estate in Houston. By that I mean that more homes will sell and prices will continue to go up.
We are expected to have at least slightly lower interest rates by April and if rates can remain in the 6’s, then we should experience more buyer confidence. Many of those buyers will need to sell their homes and they can move forward with confidence that they have not lost value in their Lower inventory levels have kept prices up. We are expecting to see a balanced amount of buyers and sellers entering the market this year, which should mean more homes for buyers to compare, balanced by fairly fast selling cycles and steadily increasing prices due to buyer competition.
We are still inundated with war, elections, inflation and don’t forget pestilence, but even when times are uncertain, people still invest in real estate. Yeah!
GREATER HEIGHTS
by Amanda & Rich Anhorn
The Heights, a diverse small town community “Inside the Loop” was developed in the 1890’s by its founders Oscar Martin Carter and Daniel Denton Cooley who were the principles of the Omaha and South Texas Land Company. These midwestern investors were drawn to the higher elevation of the area and purchased 1,700 acres of land. With electrification, the developers could expand further from downtown Houston with the use of the city’s street car system. The Heights became the city’s first large, planned community and existed separate from Houston until it was annexed in 1918.
Today the Heights has much to offer its residents, including one of Houston’s grandest boulevards, home of a 3 mile walking trail, majestic trees and public art sculptures. The Heights architecture ranges from Texas Victorians, turn-of-the-century bungalows and new development. Other amenities the Heights offers are exemplary schools, acres of parks, miles of trails, an exploding restaurant scene, live entertainment, antique stores and offbeat boutiques. In recent years, portions of the Heights have been designated as historic, which has preserved the original character of the neighborhood. If you have bought or are thinking of purchasing a home in the Heights then you’ve made a wise decision.
A recent CNN survey ranked the Heights the #4 big city neighborhood in the country. Single family homes range from $335,000-2,250,000 with standard lot sizes ranging from 4,400 square feet up to 7,500 square feet or larger in some cases. The amount of single- family sales for 2023 was over 965 transactions with an average price per square foot of $335. Townhomes mostly exist on the outer boundaries of the Heights and range from $280,000-$775,000. In 2023 there were 81 transactions with a price per square foot of $219. Lots are still in high demand but year by year they are becoming scarce in the Heights with prices ranging from $153,000-$1,815,000 with an average price around $72 a square foot. In 2023, there were 35 lots that sold. If you’re in the rental market there is a wide variety to choose from including garage apartments which start as low as $750 a month to luxury homes up to $13,000 a month.
Amanda & Rich Anhorn | Greenwood King Properties |713.255.5123 | anhorn@greenwoodking.com Top Producer 2004-2023
INDEPENDENCE HEIGHTS
by Jessica McCreary
Independence Heights is Houston’s newest “hot spot” for new construction. This area is conveniently located North of Houston Heights, just outside the 610 Loop. The Super Neighborhood, created by the City of Houston, drew its borders as Tidwell to the North, Shepherd Drive to the West, 610 to the South, and 45 to the East.
Similar to the Heights, this area is rich in history. The area started to be developed in 1908 by Wright Land Company. But a little-known fact is that in 1915 Independence Heights was incorporated and became the first African American municipality in Texas. Then, in 1929, the community was annexed by the City. Ever since the area suffered heavy damage by Hurricane Ike in 2008, it has been on the brink of revitalization.
The trend towards new construction really started to hit back in 2014 to 2015, when the median price per square foot more than doubled! Back in 2018, the Houston Chronicle said this area “has it all” and cited a study conducted by Redfin, who ranked neighborhoods based on what Buyers are looking for: good schools, lots of inventory to choose from, transit options, good commute times, relatively low crime and of course, affordability.
One could almost say Independence Heights is Houston’s “hidden gem.”. The development of a Whole Foods 365 at 610 & Yale has prompted other businesses to take a risk in this “up-and-coming” town location. A 43-home, gated development called Yale Heights has broken ground by Lamar Builders. Their unique homes will start at $479k and offer a selection of 2.5 & 3-story floorplans with first-floor living, small yard & custom finishes. For 2017, the average sales price for a lot was $45,316. In 2019, that jumped to $62,954.With new roads and infrastructure being installed, this will only improve values.
Let’s not forget the area’s popularity with Millennials, as well. They represent the largest cohort of homebuyers in the country, and Houston is no different. The key to their heart is also affordability. New construction ranges from $359k-450k in most cases. At that price, you typically get an actual single-family home with a nice-sized yard.
Jessica McCreary | HTX Living | 713.408.3185 | htx-living.com
MEMORIAL
by Genevieve Rowland
Historically speaking, The Memorial area has always been one of the most desirable areas in Houston to live and invest in real estate. It has retained its value through Houston’s good times and bad and has been a haven for families and businesses since the 1950s. In today’s market, people may be a little hesitant to make a move, but this area is a sure bet. Just like the stock market has its ups and downs, so does the real estate market. In 1996 I purchased my first house and was ecstatic to get a 6.5% interest rate! I refinanced a few years later to just above 3%. My house is now worth almost 4 times what I paid. My grandparents bought a home off Memorial Drive in the 1950’s for $55,000. The lot alone is now worth almost $2.5 million dollars!
There are picturesque tree-lined streets, award-winning schools, acclaimed restaurants, shopping, and some of the best medical facilities in the world. Having grown up in the area and attending Hunter’s Creek Elementary, where my Aunt Genevieve also went, it was one of the happiest times of my life biking up and down the safe streets, exploring the trails along the creeks and bayous. This feeling prevails throughout the area and in the Villages: Bunker Hill, Hedwig, Hilshire, Hunters Creek, Piney Point, and Spring Valley These neighborhoods have minimal commercial intrusion with many lots ranging from ½ acre to 3 to 4 acres each.
According to HARMLS market (this does not include off market sales), there were 78 sales of single-family homes in 2023 throughout the villages South of I-10. Sales were down over 50%, mirroring the rest of the market due to higher interest rates, resulting in fewer buyers and lower inventory. The supply was low; however, the average days on the market was only 68 days, which was only 14 days more than the entire average of the state of Texas. Considering that this is one of Texas’s most expensive zip codes, this proves once again the desirability of The Villages in Houston! The lowest sales price was $710,000 In Spring Valley, and the highest was $4,825,000 in Bunker Hill right before Thanksgiving! The average sales price was $1,852,899 ($414.61/SF) with an average size of 4,540 sqft. 7 of the homes were new builds.
For January and February 2024, we already have an average sales price of over $2,072,714 vs. $1,533,818 in 2023. That’s over half a million dollars more than this time last year!
With the discerning buyers expecting more from their homes, the changing working environment, and people wanting an overall higher quality of work/home lifestyle experience, now more than ever, The Villages can most certainly deliver!
Genevieve Rowland | Keller Williams | 281.904.7014 | www.rowland-properties.com
RIVER OAKS
by David Michael Young
As you turn onto Kirby Dr from Allen Parkway and Shepherd, it becomes immediately evident that you have entered Houston’s premier neighborhood – River Oaks. These 10,000+ SF estates on lots of ½ to 2 acres would impress visitors from anywhere on the planet. And those are not the most impressive of the homes in River Oaks. For those, we need to drive down River Oaks Blvd, Inwood Dr, Willowick, and Lazy Lane west of Kirby.
With a buy-in price of $1 million and previous sales over $30 million, this genteel neighborhood is home to many of Houston’s wealthiest families. Established in the 1920s by Houston’s famous Hogg family and anchored by the exclusive River Oaks Country Club, the River Oaks subdivision of roughly 1,300 homes was primarily built in the 1920s and 1930s. Most of these homes were designed and built by renowned architects and builders and have been preserved over the years by consecutive owners, but as these homes are aging, more and more are being torn down for new construction.
There is a wide geographical area that likes to identify as River Oaks. This report will only include the subdivisions of River Oaks Country Club, Tall Timbers, Homewood, Royden Oaks, and Avalon Place.
River Oaks Real Estate Overview
- Some of the highest-priced homes are not listed in MLS.
- As of March 1, 2024, there are 34 active listings for sale ranging $1,990,000 to $27,500,000 while averaging $7,068,615 ($769/SF) and 236 days on the market.
- 5 homes are currently under contract while listed $1,490,000 to $20,000,000 while averaging $7,175,000 ($812/SF) and 135 days on the market.
- 97 homes sold in 2023, ranging $740,000 to $12,750,000 while averaging $3,629,641 ($634/SF) and 100 days on the market.
- Compare this to 2022, when 104 homes sold ranging $800,000 to $15,980,000 while averaging $3,281,678 ($585/SF) and 118 days on the market.
- The average size of the homes sold last year was 5,437 SF, the average lot size was 14,663 SF and the average age was 1973.
David Michael Young | Compass RE Texas | 713.320.6453 | www.youngrealtyhouston.com
TANGLEWOOD
by Cynthia Wolff
Tanglewood is one of Houston’s premier residential neighborhoods and is located in the Uptown area. It was developed in the 1950s by William Giddings Farrington and designed by renowned architect John F. Staub. Farrington intended to build a community that was close to the energy corridor yet far enough from the hustle and bustle of downtown. It is known for its large, tree-lined lots and beautiful homes, many of which have been beautifully renovated or rebuilt in recent years. As a native Houstonian who grew up in the Tanglewood area, I enjoyed watching the redevelopment.
Today, Tanglewood is a thriving community, continuing to attract affluent residents who appreciate the high standard of living and convenient location near major highways and The Galleria. Tanglewood is also home to the Houston Country Club. The community maintains its value and reputation with well-preserved homes and top-notch services.
Real estate in the neighborhood consists of single-family homes. Tanglewood Boulevard is a tree-lined boulevard that runs from Chimney Rock to San Felipe. Tanglewood Boulevard is a popular route for joggers, walkers, and cyclists and is also used for community events.
Tanglewood is a Houston treasure, and its success can be attributed to the vision of its founder and careful planning and development. As Houston grows, Tanglewood is a shining example of a well-planned residential community.
Tanglewood Real Estate Overview
- Currently, there are 18 active listings for sale in Tanglewood.
- The average list price of the homes currently on the market is $3,822,722.
- The average size of the homes currently for sale in the Tanglewood neighborhood is 6,789 square feet, and the average lot size of the listed homes is 21,308 square feet.
- Tanglewood currently has 1 home for lease with a list price of $25,000 per month and $4.89 per square foot.
- Currently, Tanglewood has 3 active lot listings for sale at an average list price of $1,462,667.
- In 2023, 49 homes sold for an average sales price of $2,664,385, which is an increase in sales price of 10.6% over 2022.(Above numbers are from the Houston Association of Realtors 2-29-2024)
Cynthia Wolff | Beth Wolff Realtors | 713.622.9339 | www.bethwolff.com
WEST UNIVERSITY
Nestled just to the west of Rice University, West University Place is one of the most desirable neighborhoods in Houston. Stretching just over 2 miles, West U retains its small-town feel in the middle of a big city. Developed in 1917, the neighborhood still exhibits some of the original bungalow designs but mostly has made way for newer construction. West University has shown some of the strongest appreciation in land value over the past 20 years in the city of Houston. Its exemplary West University Elementary School and a West U seniors program contribute to its appeal.
The City of West University also has its own police department, fire department, and mayor.
Most commonly known for its street names – resembling universities across the country, the neighborhood has strong educational ties. This makes the “Neighborhood City” ideal for living, working, and raising a family. The community manages its neighborhood parks, pools, recreation center, library, and more.
West U West University Place
Real Estate Overview
- As of March 1, 2024, there are 29 active listings for sale ranging from $498,000 to $5,795,000, averaging $2,163,014 ($573/SF), and 157 days on the market.
- 18 homes are currently under contract while listed at $649,000 to $2,385,000, averaging $1,850,000 ($470/SF) and 75 days on the market.