Housting report

Houston rent prices rise as COVID-19 impacts local housing market

Houston rents actually rose in May. Sky Noir Photography by Bill Dickinson/Getty Images

The impact of COVID-19 has not been lost on the Houston housing market, with home sales dipping and rents rising. Here's a look at the current landscape.

Rising rents

In May, single-family home leases were up a solid 12 percent, notes the Houston Board of Realtors. This coincided with rising Houston rents.

According to Abodo's report, the median rent for a one-bedroom unit rose 0.51 percent month-over-month to $1,179, while two-bedroom rents gained 1.24 percent to a median $1,466. While one month's numbers don't necessarily mean a rental price spike, instead of Houston experiencing a COVID-19 price recession, we are currently seeing the opposite.

There are a number of reasons that trend could change, however. First, like potential homebuyers, would-be renters may want to stay safe and out of unfamiliar buildings. There is also anecdotal evidence that some apartment shoppers are worried about COVID-19 spreading in big complexes, and therefore the sprawling apartment complex market may be more negatively impacted than duplexes or other small housing uniques.

Dipping sales

"Houston home sales fell for a second straight month in May as the impact of COVID-19 and related stay-at-home orders continued to play out throughout the market," said the Houston Association of Realtors in its May report. "Homes in every pricing category suffered losses, with the steepest declines at the low and high ends of the market. Homes priced below $100,000 dropped more than 37 percent while those priced above $750,000 plunged more than 56 percent. Year-to-date sales are now running 4.3 percent behind 2019's record pace."

That's grim news, and even though mortgage rates are at record lows — good credit can get you a 15-year loan at 2.94 percent — many potential buyers are staying put. Conversely, some sellers are taking their homes off the market because of COVID-19 concerns.

Going virtual

While virtual tours and property management scheduling and showing tools are helping stay-at-home buyers make some purchasing decisions, very few will make a major home purchase without a careful in-person viewing. In addition, many sellers might struggle with the concept of selling their homes online.

However, renters are open to finding a new place virtually. Research from Abodo shows that "more than 60 percent of renters said that coronavirus has negatively impacted their apartment search. Additionally, 30 percent of renters surveyed stated they'd prefer photos and floorplans in a virtual manner, while pre-recorded videos of units (27 percent), and live personalized unit tours (21 percent) rounded out the pressing desires of renters."

Advances made now in virtual apartment shopping will have a market effect long past the current pandemic, and landlords would be well advised to adding virtual tour capabilities now.

Looking ahead

Some buyers and renters are staying on the sidelines waiting for a market crash, while others are gearing up for a steady recovery. As the pandemic continues, however, Abodo expects the Houston real estate and apartment rental economic activity to be stagnate at best.

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This article originally ran on CultureMap.

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Building Houston

 
 

Five research teams are studying space radiation's effect on human tissue. Photo via NASA/Josh Valcarcel

A Houston-based organization has named five research projects to advance the understanding of space radiation using human tissue. Two of the five projects are based in Houston.

The Translational Research Institute for Space Health, or TRISH, is based at Baylor College of Medicine and funds health research and tech for astronauts during space missions. The astronauts who are headed to the moon or further will be exposed to high Galactic Cosmic Radiation levels, and TRISH wants to learn more about the effects of GCR.

"With this solicitation, TRISH was looking for novel human-based approaches to understand better Galactic Cosmic Rays (GCR) hazards, in addition to safe and effective countermeasures," says Kristin Fabre, TRISH's chief scientist, in a news release. "More than that, we sought interdisciplinary teams of scientists to carry these ideas forward. These five projects embody TRISH's approach to cutting-edge science."

The five projects are:

  • Michael Weil, PhD, of Colorado State University, Colorado — Effects of chronic high LET radiation on the human heart
  • Gordana Vunjak-Novakovic, PhD of Columbia University, New York — Human multi-tissue platform to study effects of space radiation and countermeasures
  • Sharon Gerecht, PhD of Johns Hopkins University, Maryland — Using human stem-cell derived vascular, neural and cardiac 3D tissues to determine countermeasures for radiation
  • Sarah Blutt, PhD of Baylor College of Medicine, Texas — Use of Microbial Based Countermeasures to Mitigate Radiation Induced Intestinal Damage
  • Mirjana Maletic-Savatic, PhD of Baylor College of Medicine, Texas — Counteracting space radiation by targeting neurogenesis in a human brain organoid model

The researchers are tasked with simulating radiation exposure to human tissues in order to study new ways to protect astronauts from the radiation once in deep space. According to the release, the tissue and organ models will be derived from blood donated by the astronaut in order to provide him or her with customized protection that will reduce the risk to their health.

TRISH is funded by a partnership between NASA and Baylor College of Medicine, which also includes consortium partners Caltech and MIT. The organization is also a partner to NASA's Human Research Program.

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