HOUSTON–(BUSINESS WIRE)–Increased demand for suburban housing will support property values in the outlying sectors around the Greater Houston metropolitan area and other Texas cities, according to Deal Sikes, a leading Houston-based valuation firm.
“Corporate workplace trends, such as working-from-home, have energized the suburban housing markets. Even employees who will work-from-home only one or two days a week in the future, are more open to suburban and exurban living,” said Mark Sikes, principal with Deal Sikes. “As this trend plays out, attitudes about long commutes will change and homebuyers will respond by moving farther out.”
Community developers and home building firms are showing an increased appetite for lots and developable land in counties surrounding Houston, Sikes said.
“Suburban housing growth is establishing a future market for retail development in the long-term,” Sikes said. “Current market conditions have placed pressure on retail, but as population growth continues in outlying areas, the retail market will regain momentum for new suburban development.”
Another trend supporting the case for future suburban growth is the maturing of the Millennial generation – those born between 1981 and 1996 – who are expected to find suburban living and schools more appealing than living in urban areas.
“A number of trends, including the cost of upscale urban housing, point to suburban growth in the coming years,” Sikes said. “Home ownership is an attractive proposition. Our rising home prices benefit home owners, who are attracted to the opportunity of long-term appreciation of their residence’s value. Plus, mortgage rates have been hovering near 3 percent, an extremely low rate that enables buyers to obtain larger, higher quality homes while keeping monthly payments low.”
Some corporations, including major technology firms, are enabling employees to work from home on a full-time basis, opening the door to establishing residences in vacation areas or scenic regions. Other companies may elect to move from downtowns to suburban corporate campuses.
“In some cities around the nation, rising taxes and the challenges of urban living and mass transit are prompting individuals to depart for the suburbs,” said Matthew Deal, principal with Deal Sikes. “In Texas cities, urban threats are not perceived to be as severe. But the affordability of suburban life appeals to a growing number of individuals and this will impact commercial real estate markets across the country.”
Deal Sikes provides valuation and counseling services for real estate firms, governmental agencies, law firms, and investors across the region. www.DealSikes.com
Mark Sikes or Matthew Deal, 713-662-3500