Top Neighborhoods for Investing in Houston


Houston neighborhoods where your luxury investment dollars are most wisely spent

As the nation's fourth-largest city, Houston brings a lot of big-city clout to the real estate game. Commercial, industrial, and offices all help drive the city's real estate market forward. But the area where real dollars are being made is residential. And within the specific market, luxury residential real estate is proving to be the star of the show.
But with so much luxury and so many communities competing for your investment dollar, where to begin? Let's get your luxury property search started by exploring the top neighborhoods for investing in Houston.

The Heights

Initially developed in the early 1890s, the Houston Heights, or "The Heights" as it's now known, has experienced skyrocketing development and an influx of new residents over the past decade. Home appreciation is on a positive upward trend, fueled by the locale offering residents a happy compromise - proximity to downtown Houston with a more suburban, park-like vibe.
But The Heights isn't some sleepy burg. It's vibrant and diverse. Historic, Victorian-era homes sit adjacent to new, more modern developments. There's plenty of dining and nightlife. It's a standout community in which to play once you return home from your CBD job four miles away. Access to the whole of Houston is a cinch, with I-610 forming The Heights' northern border and I-10 shoring up the south. Commuting to northern suburbs via I-45 or the Hardy Toll Road is just as easy.
Homes within The Heights offer many different investment opportunities. New developments are off the charts and include a healthy mix of single-family, townhomes, and condominiums. Many are close to the area's parks and ever-increasing hike and bike trails. Overall, the community is very walkable, with shopping and dining opportunities typically less than 15 minutes from your front door.
The median sales price is $520,000, representing a 12% jump over the past five years.


If your home investment strategy is driven by location, there are few better places to put your dollars than in Midtown. Bounded by I-69 to the east and south, I-45 to the northeast, and blending into Houston's urban inner loop neighborhoods to the west, Midtown is ideal for those seeking to be in the middle of it all.
Midtown is a boomtown within a boomtown. Over the past decade, the area has blossomed. Neighborhood growth is up more than 50% and has become a favorite landing spot for young professionals - both single and those in the early stages of raising families. The heavy condo and townhome presence offer a low threshold for entry with positive long-term ROI potential. Lofts are also a big draw in Midtown and a popular investment play.
The neighborhood is also immensely walkable - rare for a southern metropolis. Houston's downtown central business district is immediate to the north. Minute Maid Park and the Toyota Center are both less than two miles away. Closer to home, the community boasts nearly 150 restaurants and bars, a handful of gorgeous parks, and convenient access to shopping - both for necessities and splurges.
Houston's light rail runs through the heart of Midtown. It gives you direct access to the Theater District and UH-Downtown to the north and the Museum District, Hermann Park, Rice University, the Texas Medical Center, and NRG Stadium to the south.
The median sales price is $336,250, which represents a 44% increase over the past decade.

Rice Military

Though compact - neighborhood boundaries include Washington Avenue to the north, Shepard Drive to the east, Memorial Drive / Buffalo Bayou to the south, and Westcott Street to the west - Rice Military features vast investment potential.
Offering greater affordability than its neighbors - River Oaks is immediately south, Glen Cove immediately west - Rice Military has long been a massive draw for young professionals. There's a diverse selection of housing that includes both single-family and newly developed townhomes and condominiums.
Downtown is close. The outdoor oasis of 1,500-acre Memorial Park is even closer—effectively next door! You're also minutes away from the Galleria and the Medical Center. For those seeking a consistent ROI, Rice Military carries the benefit of constant demand. Aside from proximity to downtown and ease of access to I-10 and I-610, the community is surrounded by dining and nightlife.
Rice Military’s median sales price is $474,900, which is a 32% increase over the previous decade.
Ready to explore the best of Inner Loop Houston real estate? Contact Judson Tate today to start your home buying journey. From Montrose real estate to River Oaks homes for sale, or one of the standout investment neighborhoods detailed above, allow Judson and his team's years of experience and expertise to be your guide to the Houston luxury real estate market.

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Judson will go above and beyond to ensure that a client, buyer or seller, has a positive real estate experience. He provides a higher level of work ethic for his clients, walking them through each aspect of the process and offering consistent communication every step of the way.
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