Report: Houston homeownership rate reaches 15-year high

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Pandemic or not, homeownership in Houston has broken some records recently. Photo by Ariel Skelley/Getty

Propelled in large part by rock-bottom interest rates for mortgages, the homeownership rate in Houston is knocking on the door of its highest level in at least 10 years.

An August 12 report from the Texas A&M Real Estate Center shows that in the second quarter of 2020, the Houston metro area experienced its highest homeownership rate since the center started recording the regional rate in 2005. The area's homeownership rate was 68.2 percent in the second quarter of this year, up from 65.5 percent in the previous quarter and up from a low of 57.6 percent in the fourth quarter of 2017.

The upward trend mirrors what's happening statewide. In June, Texas' homeownership rate hit a new high mark.

According to the report, a record 67.5 percent of Texans owned their homes in the second quarter of this year, up from 64.5 percent in the first quarter and from the record low of 60.8 percent in the fourth quarter of 1997.

"Despite falling sales in April and May, Texas' second-quarter homeownership rate was the highest since recordkeeping began in 1996. Texas now lags the national rate by only half a percent, the smallest in eight years," James Gaines, the center's chief economist, says in an August 12 release.

Here's how the numbers break down in the state's other large cities:

Among the state's four major metro areas, Austin saw the steepest climb in the homeownership rate. The rate jumped to 65.3 percent during the second quarter of 2020 from 59.4 percent in the previous quarter. Since the real estate center began tracking Austin's homeownership rate in 1996, the highest rate was 69.3 percent in the third quarter of 2006 and the lowest rate was 49.2 percent in the fourth quarter of 1996.

The homeownership rate in DFW hit 64.7 percent in the second quarter of this year. That's up from 62.7 percent in the first quarter of 2020 and slightly below the high mark of 65 percent in the first quarter of 2010. The real estate center started tracking DFW's homeownership rate in 2005.

In the San Antonio area, the second-quarter homeownership rate was sandwiched between its highest-ever and lowest-ever rates since 1996. The rate for this year's second quarter stood at 66.2 percent, up from 66 percent in the previous quarter. Since 1996, the highest rate was 76 percent the fourth quarter of 2004 and the lowest rate was 56.3 percent in the first quarter of 1996.

Spikes in homeownership rates across the state's four major metro areas came despite a recent jump in median sale prices. Real estate platform Zillow reports that as of the end of June, the median sale price of a single-family home was:

  • $256,400 in Houston, up 1.7 percent from the same time a year ago.
  • $246,753 in San Antonio, up 3.8 percent from the same time a year ago.
  • $289,000 in DFW, up 2.3 percent from the same time a year ago.
  • $342,345 in Austin, up 3.7 percent from the same time a year ago.

Gaines says pent-up demand and record-low mortgage rates pushed statewide home sales up 29.4 percent in June.

"Texas homes are selling at a record pace. A dwindling supply of active listings and a resurgence in home sales pulled Texas' months of inventory down to an all-time low of 2.8 months," according to the real estate center's report.

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This article originally ran on CultureMap.
For better or for worse, COVID-19 has increased the need for technology in real estate. Getty Images

Houston expert: How COVID-19 fast-tracked real estate technology

Guest column

COVID-19 has impacted every facet of our lives, and the housing market is no exception. The majority of real estate, for better or worse, relies on in-person interactions.

Things like wet signatures, home tours, inspections, and appraisals all require physical attendance — making it difficult to create digital alternatives.

Although many of these disruptions are a hindrance this unique time also presents an opportunity for the real estate industry to showcase its ability to grow and adapt to the digital age.

Technology's grand entrance into real estate

As a people-first business, real estate has always been based on relationships and face to face interactions which make transactions amid a pandemic excruciatingly difficult. Although technology and real estate are not completely foreign with companies such as Zillow and OpenDoor having established their niche, many of the more traditional real estate companies had yet to fully embrace the reality of technology's arrival. The thought was a real estate transaction must be sealed with a handshake, a wet signature, and a bottle of champagne.

Upon the onset of COVID-19, many quickly realized that technology was no longer an option but in order to endure this crisis adoption of disruptive innovations was a necessity. Moreover, with millennial homebuyers being the most active clientele the industry needed to meet them where they are — online.

Although there is nothing like the personal touch of a guided tour, home showings had to adjust to adapt to COVID-19 by embracing and utilizing 21st century technology. This was achieved through videos, high quality images, and innovative staging posted online for potential buyers to take 360-degree tours. Rather than sacrificing nuances such as a well-staged home, which has shown to have the potential to increase a home's sale price by up to 6 percent, real estate agents crafted innovative ways to digitally put a home's possibilities on display for buyers to see.

Another impediment created by COVID-19 was the way people close. Many documents require wet signatures. Fortunately, remote closing technology has improved over the last decade and COVID-19 increased the adoption rate of these platforms by individual states and lending institutions at a much quicker rate than would have been otherwise.

Some examples of these useful tools are remote online notarizations (RONS), mobile closings, and electronic signatures. While these tools are extremely helpful there is still much in the way of mass adoption before the industry can be as nimble and adaptive to not experience large stalls in the face of this sort of unprecedented pandemic. In time, as we dive deeper into the digital age, it would seem that these options would become more widely accepted throughout the industry.

The dangers of tech and real estate

As new digital adaptations increase, so do the risks. Although the introduction of new technology has enabled the industry to continue operating, it also increases the already prevalent risk of cyber security threats.

Phishing attempts and cyber-attacks are on the rise. Hackers are trying to capitalize on increased exposure from employees connecting on home devices. Simply educating employees and clients of the dangers associated is the first line of defense. Internally and throughout the industry, we have seen companies who are committed to ensuring each transaction is done safely and securely through VPNs, and other programs that guarantee the protected transfer of funds.

As a company, we have made cyber security a top priority by requiring multi-factor authentications, third party wire verification services through a company named CertifID and implementing consistent training on how to spot malicious phishing attempts.

What's next for the Houston housing market?

Consumer confidence is key to the success of the housing market. As Houston's economy begins to reopen, we have seen a substantial increase in transactions being finalized and consummated through closings. Both refinances and purchase transactions are on the uptick at the moment and that is encouraging. However, as new waves of the virus roll in there is always the chance that business slows, and the idea of buying a house fades.

As we wait for consumer behaviors to stabilize to the new normal, savvy buyers and borrowers have the opportunity to capitalize on a unique opportunity by taking advantage of low mortgage rates for increased buying power or to lower payments on existing mortgages. Transactions beget transactions and the more movement there is the better for the industry.

Lastly, as with all disruption comes opportunity and opportunity abounds because of COVID-19. With so many companies being forced to adopt new ways of operating due to the pandemic the real estate industry has a chance to adopt a more advanced foundation based on available technology which will help insulate it from future disruptions. With some innovation, a simpler, more efficient overall experience can be created for customers.

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Eric Fontanot is president of Patten Title a full-service closing company with locations in Houston, Austin, and Dallas. Patten Title's technology-enabled team of title and escrow professionals continue to provide real title solutions for customers in Texas.
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Mayor greenlights major solar farm project in south Houston

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Mayor Sylvester Turner and the city council have given the green light on a project that will convert a 240-acre former landfill in Sunnyside into a brownfield solar installation.

The public-private partnership with Sunnyside Energy LLC. received unanimous approval on a lease agreement that will move the project — which is a part of the City's Climate Action Plan and Complete Communities Initiative — forward.

"The Sunnyside landfill has been one of Houston's biggest community challenges for decades, and I am proud we are one step closer to its transformation," says Mayor Turner in a news release. "I thank the Sunnyside community because this project would not have come together without its support. This project is an example of how cities can work with the community to address long-standing environmental justice concerns holistically, create green jobs and generate renewable energy in the process."

The solar field, which is anticipated to be installed and working by the end of next year, will be able to power 5,000 homes and offset 120 million pounds of CO2 each year, according to the release.

"We applaud the actions of Mayor Turner and the City Council in taking this significant step," says Dori Wolfe, managing director of Sunnyside Energy LLC, in the release. "It is a strong vote of confidence for this impactful project. All members of the project team realize that this Sunnyside Solar facility will be an iconic statement in the rejuvenation of the community. We are grateful that Mayor Turner has given us his support."

The city's involvement with the company began in 2017 when Houston joined the C40 Reinventing Cities Competition – a global competition to promote sustainable energy projects. As a part of the competition and through the city's efforts on the initiative, powers at be selected the winning proposal from Wolfe Energy LLC, which formed Sunnyside Energy LLC to execute the urban solar farm project.

Per the lease agreement, the city of Houston owns the land and Sunnyside Energy will be the tenant responsible for permitting, construction, operation, and more.

Houston health company acquired by Seattle tech biz

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A West Coast health tech company has announced the acquisition of Houston-based 2nd.MD.

Accolade Inc., which uses technology solutions to help users better understand their benefits and the health care system, announced last week that it has signed a definitive agreement to acquire Houston-based expert medical opinion company 2nd.MD.

The goal of the acquisition is to further simplify the healthcare experience for employees and increase return on investment for employers, according to a press release from Accolade, and the company will continue to offer 2nd.MD's service on a stand-alone basis as well.

"We share a common vision to help every person live their healthiest life by dramatically improving quality and accessibility of care through a people-focused, clinically-driven support model," says Rajeev Singh, CEO of Accolade, in the release. "Bringing 2nd.MD's world-class Care Team and digital approach with expert medical consultation into Accolade, and continuing to offer it on a stand-alone basis, will have an immediate and measurable impact for our customers, their employees, and the health plans we work with."

"Both companies have built deep relationships with employers and health plans by helping employees navigate the increasingly complex and inconsistent healthcare system," Singh continues. "With the addition of 2nd.MD, we'll nearly double our total addressable market while providing the most comprehensive, integrated healthcare navigation experience available."

2nd.MD supports over 300 employers — connecting more than 7 million people to over 900 nationally recognized, board-certified medical specialists. According to the release, the company reported unaudited revenues of approximately $35 million.

"When it is you or a loved one facing a serious health decision, waiting for weeks to receive a second opinion from an expert isn't acceptable. We've built a scalable Expert Medical Opinion offering that treats every member like family," says Jason Melton, CEO of 2nd.MD. "Combining our Care Teams and technology with Accolade will enhance the reach and quality of support to members from the moment of crisis to the other side of treatment on the path to wellness. We share a common business vision, our cultures are highly aligned around employee purpose and we share a common mission to change healthcare for the benefit of all consumers."

5 PR and marketing tips for Houston startups and small businesses in 2021

guest column

The past year has been a rollercoaster for small businesses. When the pandemic hit, every single person was affected. We've all had to pivot in some way either personally, professionally, or both.

As public relations and marketing professionals who specialize in working with small businesses, we've spent the last 10 months in the trenches with our clients, advising and helping business owners and entrepreneurs navigate these uncertain times. While small business revenue is down since January 2020, it's not all doom and gloom out there – we've seen many other businesses experience unexpected success and growth, and according to economists, we are entering the greatest entrepreneurial economy of our time.

And as we start this new year, there is no better time to invest in business growth and planning. Below are five tips to help you get started.

1. Get smart on your PR

Whether you know a little or a lot about public relations, marketing, and social media, take some time to get caught up on the current landscape. It is constantly changing, and having a better understanding of how traditional media, social media, paid marketing, owned content and all other components can benefit your business will inform decisions about where to allocate your time and resources.

First, assess what stage of business you are in as well as your business goals to determine what PR and marketing tools could be most beneficial to your growth at this time. Not all small businesses are prepared, financially or otherwise, to invest in PR, and there are fundamental steps you can do on your own to get your business positioned to succeed.

With online education booming, there are many free resources and tools at your disposal. We created All You Need Method to simplify PR and marketing for small business owners. You can download our Free PR Roadmap on our website to assess what level of PR support is right for your business. We also created The PR Starter Kit online course to give small business owners the fundamental tools they need to use PR, marketing, and social media to support business growth and build a lasting brand – and it only takes a few hours to complete.

2. Revisit your target audience

The world has changed significantly over the past year and so have the wants, needs, habits, and interests of consumers. As a small business, it's imperative to understand your target audience's current problems in order to relate to them, build trust, and deliver a product or service that is meeting their needs.

Before investing time and financial resources creating and executing a 2021 business plan, take a step back and consider your ideal customer. Outline how the past year has created opportunities or challenges in their life, problems they are facing, new shopping habits, lifestyle shifts, communication preferences, concerns, etc. If you have more than one ideal customer, work through this exercise for each.

With this new perspective, you will be equipped to make business decisions through the lens of how you can better serve your customers, rather than how to increase revenue.

3. Stand for something

Brands that are succeeding today are the brands that are authentic, vulnerable, and that stand for something. According to a global study by Zeno Group in July 2020, consumers are 4 to 6 times more likely to purchase and champion purpose-driven companies.

Having a purpose doesn't require a brand to have a philanthropy component or an outspoken political stance – it's about identifying your specific values and making them apparent through your messaging and leadership within your industry. Values could include committing to sustainable production methods, outstanding customer service, commitment to diversity, or supporting a specific cause. What is most important is that your values are authentic and that you can stand behind them long-term.

As the founder/owner of a small business, you have an opportunity to put a face and values behind the brand so that your company is about more than selling something.

4. Clarify your message

After revisiting your target audience and carefully considering your brand values, incorporate those findings into your messaging. Conduct an audit of your website, social media channels, and all external facing materials, and update your messaging to ensure that if your ideal customer had a 30 second encounter with your brand, they would walk away with your most important messaging points. Important points to consider as you craft new messaging include:

  • How your product or service solves a problem for or benefits your target audience
  • Brand values
  • Points of differentiation

5. Be authentic and communicative

Before the days of social media, a brand had to rely on third parties, including editorials and ads in magazines and newspapers, to spread the word about their brand. Social media and all "owned channels," including a brand's website, blog, and newsletter, have leveled the playing field and allow small business owners to have control over their communication with customers. Through your owned channels, a brand can decide what to post and when, which is incredibly valuable.

While securing press and advertising opportunities is valuable to growth and brand awareness, it's largely outside of one's control. Focus your time and financial resources on communicating with your audience by creating content for your owned channels. Creating content and posting consistently can seem overwhelming to a solopreneur or small team, but there are ways to make it manageable:

  • Pick only a few owned channels to focus on, prioritizing platforms you are most familiar with using and where your audience is most active
  • Quality and consistency are more important than quantity. If you're only posting once a week due to bandwidth, commit to that frequency and increase frequency as you are able
  • To inspire and inform content creation, think about how you can serve your customers through your areas of expertise and what is relevant to both your brand and audience (events, holidays, partnerships, new product launches, etc.)
  • Create a content calendar so that you can plan out posts a month in advance to avoid last minute scrambling to decide what to post

Once you've worked through these five tips, make a plan to support your business goals - and start thinking in two phases.

  • Phase 1: Pandemic Home Stretch - Although there is hope with a COVID-19 vaccine, we know we will likely be dealing with the effects indefinitely. Use this time of uncertainty to get your business in the best shape possible.
  • Phase 2: Post Pandemic - How do you want your business or brand to show up when the world opens back up? It feels far off, but it is closer than you think and there is a huge opportunity for those who are willing to put in the work now.

Remember, these challenging times will pass. There is massive opportunity for the businesses and brands who are willing to reflect, pivot, and plan for a brighter future.

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Kathryn Worsham Humphries and Carla M. Nikitaidis are the co-creators of Houston-based All You Need Method, a PR and marketing resource for small business owners and entrepreneurs.

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