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Along with rising US apartment prices, the median home price has also risen this year due to inflation, averaging $450.00. When looking at the housing market in Texas, the median price has hovered around $350,000. (Carson Ganoong/Community Impact Journal)

Despite rising inflation and a previous year of record apartment pricesthe housing market should be back on track in the Greater Houston area this year, according to market experts.

The state of the housing market was presented at the May 24 Greater Houston Builders Association Mid-Year Forecast Luncheon.

Moderated by Ted Jones, chief economist at Stewart Title Co., the event featured a panel including David O’Reilly, managing director of real estate development firm Howard Hughes Corporation; Allan Merrill, president and CEO of housing construction company Beazer Homes; and Jim Jenkins, vice president of planned communities for residential construction company Toll Brothers.

In the United States and Texas, more jobs are being created as businesses begin to recover from the pandemic, the panel said.

From April 2020 to April 2021, the United States grew from 130 million jobs to nearly 150 million, according to presentation figures. For the month of April, Houston added nearly 30,000 additional jobs, which is still below pre-pandemic levels.

“This recession is different because people aren’t losing their jobs,” Jones said. “This recession is about rising gross domestic product.”

Along with rising US apartment prices, the median home price also rose in the first quarter of 2022 due to inflation, averaging $450,000. When we look at the Texas housing marketthe median price hovered around $350,000, according to presentation information.

Similarly, presentation figures showed that the average rent price for a one-bedroom apartment in the United States stood at nearly $1,700, while the cost in Texas remained at just under $1. $350.

As for new homes, presentation data has shown healthy growth so far in 2022.

From January to March, 15,000 single-family building permits were filed in Houston, resulting in growth of approximately 16.8% year-over-year.

“For the first time, Houston didn’t overbuild,” Jones said.

Going forward, Jones said he expects 30-year mortgage rates to rise by around 6% and more. Additionally, all three panelists agreed that affordability and accessibility are the most important factors when it comes to keeping the housing market afloat.

“Affordability is considerably better in the city of Houston than in the rest of the country,” Merrill said.

As for future housing market trends, Jenkins said Houston will see more quadplexes and three-story homes, while O’Reilly expects more smaller subdivisions with multiple homes that share a backyard. yard due to families wanting to be closer after the COVID-19 pandemic.