Why is Houston like this?

Question

Why is it that rent is kind of high ( like 850 for a small apartment in a crappy part of town). But the housing is good. Like you could by a 2 bedroom house close to the downtown area in a safe neighborhood for $200,000 or less. Why arent they balanced?

Answer 1

There is no such thing as a safe neighborhood near downtown that allows you to build a house for less than $200k. Period.

On the other hand, you could go to Katy and build a 4 bedroom house PLUS buy the land, for that same amount.

When you rent, no matter where you rent, you're also paying property taxes on that land plus insurance plus some of the utilities.

You can get an apartment for $850 a month in a nice area of town if you want. You just have to look for it.

As for balance, demand outweighs balance.

Answer 2

It will always be cheaper to buy a house than to rent.  The issue nowadays to to qualify for the mortgage.

Answer 3

people are having a harder time getting approved for mortages, hence the apartments. Since most are having to live there for a while, creates a shortage, with shortages, rents go up. It's sucks laws of supply and demand.

Answer 4

You are paying for the crappy apartment's mortgage, taxes and making a profit for them.  When you buy a house the profit part disappears. Buying a house is cheaper than renting, no matter where you live.  Houston does not want to be like New York or California or any other place, no matter what some people keep trying to tell people.  What I do not understand is why people stay places that are so horrible?  They would rather be miserable and bad mouth everything than move and be happy.  

Answer 5

$200,000 for a 2 bedroom house is ridiculous. Property taxes are high in Houston. Rent is high everywhere. My mom lived in a 1 bedroom apartment in the Tanglewood/Memorial area for $900 a month.  

Answer 6

Most rent includes some, if not all, of the utilities, maintenance, insurance on the property, landscapers, neighborhood associations and taxes which you pay separately if you are paying a mortgage.

I owned a house for 15 years and it tripled in value but after taking into account property taxes (huge here), insurance & maintenance, I really did not make any money selling it even though it felt like it.

I'll bet you could find an apartment in a better part of town for $850.

Answer 7

Maybe they're trying to be like NYC in the apartment area. They try to be like NYC with everything else.  

Answer 8

It is almost always cheaper to buy a house.  You can generally get a 30 year mortgage and therefore your payments would be cheaper.  Buying a house is really the best thing to do in the market right now.  But, you have to decide on settling down for a while, or at least have a decent deposit.  For me, I pay the rent that you speak of for a 706 sq. ft. apartment.  I know it would be a wiser investment to buy a house, but I just can't afford to save a deposit.  Plus, the prospect of staying in Houston for life makes me cringe.  It really is an awful city, why live somewhere so backwards longer than I have to?