CONSTRUCTION TRENDS AND HOUSING PRICES Residential building permit trends for Brazoria County and Pearland show that permits for single-family home construction have returned to pre-Recession levels, but that multifamily construction permits have been very limited since 2016.
American Community Survey (ACS) Census data from 2021 indicates that owner-occupied households represent 75% of the total in Pearland, which is 9% over the national average and 19% over the Greater Houston area. As of June 2021, there was only a 3.5% vacancy rate for all rental units within the City. While owner-occupied units are typically dominant in suburban markets, the limited number of available renter-occupied units can be a deterrent to corporations looking to provide rental housing to their employees and create barriers for the portion of the population that prefers to rent. As the majority of homeowners are over the age of 35, there are not many housing choices for younger people in Pearland.
FIGURE 6.3: RESIDENTIAL BUILDING PERMIT TRENDS
Single-Family Brazoria County Multifamily Brazoria County
Single-Family Pearland Multifamily Pearland
4,000
FIGURE 6.2: COMPARISON OF RENTAL VACANCY RATE TRENDS, 2017-2021
3,500
Pearland
Greater Houston
3,000
2,500
8.8%
7.8%
2,000
6.3%
1,500
6.0%
5.8%
5.7%
5.4%
1,000
4.0%
4.0%
500
3.5%
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
2020 2017 2018 2019
Source: U.S. Census Bureau
2017
2018
2019
2020
2021 (JUNE)
Even as single-family residential building permits continue increasing, the number of listings on the market in Pearland have declined rapidly. The Greater Houston area has experienced a similar decline, but the extreme pressure on the market is beginning to taper off. The decreasing inventory has led to a seller’s market where demand has outpaced supply. As a result, median closing prices for single-family residential homes in Pearland also increased significantly, from $310,000 in December of 2020 to $357,490 in November of 2021—well over the Greater Houston median closing price of $305,000.
Source: REIS
Takeaway Rental vacancy is low in Pearland and younger people are less likely to begin the process of home ownership due to barriers of entry for the Pearland market
FIGURE 6.4: MEDIAN CLOSING PRICE,
$357,490
$305,000
OCTOBER 2021 Source: www.moveto.com; Houston Association of Realtors
PEARLAND
GREATER HOUSTON
PEARLAND COMPREHENSIVE PLAN 2040
86 Chapter 6
87
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