Houston Rental Real Estate

Has anyone seen how much houses are renting for in the Houston area? Houston houses for rent have skyrocketed in per month pricing in the past few years. Most people would be better off financially as far as their monthly payment is concerned if they bought a house. Still, people are renting instead of buying. Why is this the case?

Obviously, the entire U.S. economy has seen better days. Also, lenders have become more strict when it comes to qualifying people that want to borrow money because of all of the foreclosures and short sales that have happened in the last few years. People that own their homes outright are even trying rent to own programs since they know how hard it will be to sell their home. They usually come to an agreement with the tenants that will be occupying their home a certain amount that will go toward the down payment.
Some people with great credit and a good debt to income ratio still opt to rent rather than buy because of the economic conditions. They are afraid to lock themselves into a decision because they are worried about job security or just don't want to let go of the large down payment money. Still, how much more per month are we talking to rent a house in the Houston area rather than buy it?

How much more does it cost the average family to rent a house in Houston than own a home in the Houston area? The median single family home sale price is around $150,000 in Houston, TX. Property taxes in this city are usually around 3% and everyone is required to carry insurance on their homes. The mortgage payment including taxes and insurance on $150,000 home in this area should be right around $1,350 if you get a 6% rate for 30 years and put 5% down on the house. A lot of qualified buyers could get a lower interest rate or only put 3.5% down lowering that down payment even more. In addition, because the market is so soft several homeowners are giving buyers credits of up to 6% at closing which could cover a little of that down payment. Most houses that would sell for around $150,000 are getting around $1,650 in rent per month or more. This means it is at least $300 more per month to rent the home rather than buy it and earn equity with little money down. In addition, when most houses are rented, the landlord will require a security deposit equal to one month of rent. In contrast to a lot of cities in the United States, it definitely costs more to rent in Houston than to own. There are tons of newer homes on the market and the cost of upkeep on newer energy efficient homes is minimal. The houses also usually come with a warranty.
I guess that's just the way the market is. It doesn't make much sense to me, but that's probably why I own my own home in the Houston area.

Florida Real Estate

How about a little bit of background info to start off with?

Most of you all reading this know that Florida is known as "The Sunshine State," but did you know that the 2010 state population was almost 19 million? In 2009, there were somewhere around 9 million housing units in the state.

Let's just talk about a few major metro areas. We discuss Miami, Fort Lauderdale, and Orlando. I know there are several other large cities in this sunny state, but I don't want to be writing for 3 days on this post. :-)

Miami, FL Real Estate


It seems as though Miami was one of the areas hit the hardest by the housing market crash. The decline from the all-time high real estate prices is at around 40%. This is not what Miami home owners want to hear, especially if they were counting on a home equity loan to help them through some financial struggle. The good news is that it seems like the real estate market is going to bottom out very soon in Miami. The worst year seems to be 2008 with the home depreciation rate at a whopping 27%. In 2010 the rate of depreciation was around 5%.
It seems as though this year the Miami housing market will get better. Foreign real estate investments are helping the city bounce back from the housing nightmare there. Housing sales are up around 50% this year and Condo sales are up by around 80% according to an article on Fox News in March of 2011. Who is buying in Miami? It seems quite a bit of the buyers entering the Miami market are wealthy Mexicans, Brazilians, Canadians, Romanians, and clients from France.
This is good news for this large Florida city!

Fort Lauderdale, FL Real Estate


It seems as though Fort Lauderdale home prices are declining this year by quite a bit. The price per square foot in this Florida city has declined about 15% when you compare home prices to the second quarter of last year. The median home sales price decreased about 8% when one compares it to the exact same time last year. It is a great time for buyers to enter the market, but a bad time to sell your home in Fort Lauderdale. Why do people choose to move to Fort Lauderdale? The popular tourist destination is great for people in that business or for those who are looking for a more laid back atmosphere. People who get jobs in marine commerce might end up in this beautiful city known as the Venice of America. Marine commerce accounts for over 130,000 jobs in Fort Lauderdale.

Orlando, FL Real Estate

When I think Orlando, I think family. This Florida city is great for families with young children because there is so much for kids to do there. Universal Studios, Islands of Adventure, Sea World, Discovery Cove and Wet-N-Wild theme parks are nearby. And who could forget the world famous Disney World? There are also many museums and other attractions to bring the kids to. This is why so many families travel to Orlando each year for vacation.
So what about real estate? The average price per square foot is around $72 in this family-oriented area. This is a decrease of about 7% from the same time last year. This isn't good news for those wanting to sell their homes in Orlando. This is good news if you are looking to buy in Orlando, FL. The most popular neighborhoods are Meadow Woods, Pine Hills, Metro West, Lake Nona, and College Park. The home prices in these subdivisions range from about $60,000 to about $300,000. This makes the popular neighborhoods in this city more affordable than many other cities in the United States that are good for families.

So there you have it! I hope this is useful information for someone out there looking to buy a home or sell their home in the Sunshine State!