Market briefs
Homebuilding in 2027: Forecast: Houston to Lead Nation
In Miami Beach, Fla, Houston will lead the nation in home building in 2027 and Houston’s commercial real estate markets will be among the leaders as well, as stated by the annual Emerging Trends in Real Estate report.
Houston’s prospect for a great year ahead placed it atop the rankings of 81 markets evaluated in the 2027 Emerging Trends in Real Estate report, which is jointly published by ULI and PwC. The report draws on insights from nearly 1,500 leading real estate investors, developers, lenders and advisors across the U.S. and Canada.
In the overall rankings of all property types, Houston ranked No. 6 in the nation, behind No. 1 Dallas-Fort Worth, Nashville, Miami, Raleigh-Durham, and San Francisco.
“Houston had a good year in the survey’s rankings. A lot of that story is driven by the diversification in the economy. The investment community used to view it as very much a utility centric economy,” said the report team’s Chair, Andrew Alperstein of Price Waterhouse Coopers.
In an exclusive interview at the Miami Beach convention center during the Urban Land Institute Fall Meeting last week, Alperstein told Ev Konut Proje that Houstonians had plenty of reasons to be optimistic about the year ahead.
Houston will benefit from its port, the energy sector, and high demand for industrial real estate. And Houston has low barriers to entry. “It’s going to be a good market to watch,” Alperstein said. “The Texas markets have done well and there’s a lot of positive momentum.”
Years ago, in 2015, Houston ranked In No.1 in the Uli/ PwC survey. But Houston, also known as the Energy Capital of the World, took a sharp fall all the way to No. 30 in 2016 because a decline in oil prices.
The annual rankings painted an unflattering picture for Las Vegas’ future fortunes. Las Vegas fell from being ranked No. 28 last year down to No. 78 for 2027. Las Vegas tourism is down significantly, the worst year since Covid hit. Tight household budgets are steering visitors to more affordable vacation venues.
