There’s an old saying, “Whoever has the gold, makes the rules!” When it comes to Houston home value, “whoever has the grass, gets the green!”
It’s no surprise that most buyers of residential real estate would prefer having grass (i.e. a yard) over not having one, but how is home value impacted? To determine this, I broke down the Houston housing market using the following criteria:
- Located within the 610 loop
- Single-Family homes built in 2010 or more recently
- Home size is 3,000sqft or smaller
- Splitting the data into two lot size groups: bigger or smaller than 2,500sqft
By limiting the home size to 3,000sqft or smaller we are eliminating the larger single-family homes and creating a refined sample size.
Houston Homes on Larger Lots (2,500sqft +) Sold for 21% More Than the Homes on Smaller Lots (Under 2,500sqft)
The table above details the sales within this search criteria from 2016 through 2021 YTD as of March 8th, 2021. As you can see, Houston home values for larger lots exceeds the value of the smaller lots.
Taking into account the entire time period, the homes on larger lots sold for over 21% more than the homes on smaller lots. Looking at 2020 sales alone, that figure was over 26%. This is comparing the median sales price figures.
What Do I Think Moving Forward?
What’s interesting is that the homes on larger lots made up only 41.02% of the total sample size. With continued high-density development in the city, I don’t foresee this trend slowing down one bit. Lots are only getting more expensive, so the grass will continue to bring the green$!
