Investor Preference Shifts to Higher-End Apartments in Houston

Workforce housing has historically garnered more investor interest in Houston's multifamily market than properties in the luxury cohort. Value plays have been especially popular in areas such as Southwest Houston, Alief and Southeast Houston, where investors looking to purchase older properties with the purpose of renovating and raising rents have plenty of options to choose from. Between 2012 and 2017, three-star properties, on average annually, accounted for nearly 65% of total transaction activity in Houston.