Increasing demand for suburban properties will support property values in the outlying areas of Houston and other Texas metropolitan areas, according to Deal Sikes, a 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.”
Sikes cited the high rate of development in the greater Houston metropolitan area, and the movement of millennials with children to the suburbs, as evidence for their predictions.
“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 homeowners who are attracted to the opportunity of long-term appreciation of their residence’s value. Plus, mortgage rates have been hovering near 3%, an extremely low rate that enables buyers to obtain larger, higher quality homes while keeping monthly payments low.”
The COVID-19 pandemic has also increased the expected movement to the suburbs, as corporations are allowing employees to work from home for the indefinite future, and some are expected to transition their headquarters to more suburban areas.
“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.”