2023 News Archive

The Houston land market has been hot for several years and 2022 was an exceptional year finishing 2nd in the nation issuing 47,633 single family permits and 28,153 multi-family permits for a total of 75,786 total residential permits. This is an all-time high for the Houston MSA dating back to 1988, but supported more by multi-family permits in 2022 than in a typical year. Single family home sales topped 95,100 homes sold, down 10.9% from 2021, but 36,500 new home starts helped make for an incredible year. Factoring in this year-over-year decrease, single family home sales for 2022 was $39.3 billion, but down only 1.5% from 2021 at $40 billion with steady home sale price increases for half of 2022.

The retail market in Houston appears to be well positioned for a possible economic recession. Leasing activity is strong, and landlords are raising rents in strong, high-demand market areas. Consumer demand has been notably high for home improvement, drive-thru, discount, pharmacy, and beauty concepts. Similarly, the largest move-ins over the next couple quarters will be grocery stores. This high demand allows developers to continue to bet on Houston's eagerness for new retail development.

Houston continues to be a thoroughbred in the industrial real estate market as we enter 2023, driven by 5.6 million square feet of new deliveries during 4Q22. Occupier demand has increased with population on the rise and the need to ship products in and out of the Houston Port. We are expecting around 55 million SF of industrial space to be completed between 2022 and 2023.