Spring Branch - Up and Coming Neighborhood for Investment
Revamping neighborhoods has been a trend in Houston for a while now. With the influx of newcomers over the last couple of decades, the corporate hub has had to keep reinventing itself. The best example of that is the Heights neighborhood which experienced a major transition in just about everything from multifamily sector to social scene. With modern apartment communities, lavish restaurants, and art galleries, it is currently one of the trending areas in the city. However, the latest emerging neighborhood, as all factors indicate, is its bordering Spring Branch.
Named “10 Hottest Neighborhoods in Houston in 2018” by Houston Chronicle, there are plenty of reasons why Spring Branch has been gaining the reputation as the next “hot spot”. The most obvious one being the location, of course. Conveniently positioned near the Memorial area and minutes away from the Galleria, Spring Branch also borders with Heights to the east. It is in close proximity to all major areas of the city, yet far enough to offer the peace and quiet of a family life. It is perfect for those residents who want to shorten the commute time from the suburbs and be near city’s amenities while at the same time sufficiently secluded from its crowds.
Another advantage that Spring Branch has is its reputable school district, which again, is crucial for families with children. Unlike Heights, Galleria, or other desirable neighborhoods that are centrally located, Spring Branch stands out for having one of the best public schools that Houston has to offer. People that live in the Heights prefer moving to the neighboring Spring Branch once they have children.
Other notable benefit of living and investing in Spring Branch is certainly the price point. Affordability of housing compared to the mentioned neighborhoods is a great edge and a good opportunity to consider. Buying now will account for healthy return on investment in the future, which many builders are starting to realize.
That being said, Spring Branch is rapidly expanding in terms of construction too. Just like Heights a decade ago, Spring Branch has predominantly older inventory but recently that has been changing. Townhomes and apartment communities have been on the rise indicating that more people chose to live in the area. Yet vacancies are at all-time lows as CoStar suggests. Current monthly rents are at $970, demonstrating the significant growth potential. Furthermore, according to CoStar, Spring Branch was the only submarket that had a positive rent growth in 2016 – a year notorious for massive energy layoffs and raising unemployment.
And speaking of employment, more and more businesses are relocating to Spring Branch as well. In addition to the already established global employers such as Cameron, DuPont, AMEC Paragon, and Air Liquide, other companies have moved into the area including 4J Brewing Company, Tres Amigos Bakery, Cerebros Technology Services, and The Cannon. It has been estimated that Spring Branch households spend nearly $2 billion on retail goods and services per year. With more than 120,000 consumers and counting, it’s no wonder new businesses are popping up in the Spring Branch District.
To sum it all up, Spring Branch offers so much in terms of convenience and affordability for residents, and from investors’ standpoint, tremendous opportunity and growth potential. Something that many investors wish they knew a decade ago about Heights.