Northwest Houston includes fast-growing cities like Tomball (to the north), Cypress (to the west), and Spring (to the east). With arterial freeways such as 1-45, Hardy Toll Road, and Grand Parkway (State Highway 99) running through the submarket or bordering it, residents can move through Houston with relative ease.

Demand appears to be following a flight to quality trajectory, as 870 of the 360 units absorbed over the past 12 months were within 4 & 5 Star communities. Comparatively, Class B product (3 Star) sits at -500 units, while the lowest-tier inventory stood at -8 units. The sharp rise in the cost of living over the past couple of years has been especially felt by many of the lower-income households which, in turn, has hampered demand. Looking ahead, there is an expectation this could continue throughout 2024.

Renters make up about 40% of the population, a number that may increase in the near term. While single-family home prices here typically trend below home prices here typically trend below the Houston average, the area has not been immune to the sharp rise in prices over the past couple of years, as well as 20-plus-year high mortgage rates. Both dynamics have priced many households out of the for-sale market, further supporting renter demand prospects.

Northwest Houston's long-term outlook remains favorable. This area is home to a deep pool of large, corporate employers including Daikin and Amazon, and has landed a few sizable corporate expansions and relocations over the past few years, helping fuel local housing demand. Last summer, energy giant ExxonMobil relocated its headquarters from Irving, Texas to its Spring campus. In 2022, Hewlett Packard Enterprise (HPE) relocated its global headquarters to its new 440,000-SF state-of-the-art Springwoods Village campus. The moves add two new Fortune 500 companies to the area.