More real estate professionals are viewing Houston as a market to watch, according to findings from a new survey. 

The Bayou City ranks No. 14 out of 80 cities examined on the top real estate markets list from the Urban Land Institute and PwC. The list is part of the broader annual Emerging Trends in Real Estate in 2023 report the two organizations collaborate to publish.

Houston’s ranking is up 10 spots from its No. 24 placement on last year’s list and No. 52 ranking the year before. 

The report cited Congress’s passage of the bipartisan infrastructure law and the Inflation Reduction Act, which together are likely to spur construction of several large-scale transportation projects in Houston. Additionally, Houston is one of several markets where “the convergence of science and technology is happening within innovation communities” and the “long-term view on the life sciences sector is quite positive,” according to the report. 

Non-residential construction activity continues to grow at a healthy pace, up more than 34% in the most recent three months compared to 2021 and 43% year-to-date. The region is benefitting from increases in warehouse, hospital, manufacturing, public sector, retail, road, and religious building construction.

Houston came in at No. 8 on a sperate list in the report of leading markets for homebuilding. Housing affordability in Houston, as well as other major cities across the Sun Belt, played a significant role in the rankings on that list. The report estimates that metro Houston will add nearly 550,000 new residents in the next five years, a 1.4% increase. 

Here are the top 20 markets in this year’s ULI/PwC report: 

1. Nashville
2. Dallas/Fort Worth
3. Atlanta
4. Austin
5. Tampa/St. Petersburg
6. Raleigh/Durham
7. Miami
8. Boston
9. Phoenix
10. Charlotte
11. San Diego
12. San Antonio
13. Orlando
14. Houston
15. Northern New Jersey
16. Denver
17. Seattle
18. Washington, DC–Northern VA
19. Salt Lake City
20. Los Angeles

View the most recent construction activity report.