An October report researched by the Urban Land Institute and Price Waterhouse Coopers has predicted that the housing market will reach its lowest by sometime in 2009. The study also predicts that the market will not really start a rebound until into 2010. This prediction is based on input from over 600 real estate experts. There are several factors that were considered during the research time for this report, including loan practices and investment possibilities.

For 2009, the study recommends investing in urban apartments and warehouses are the strongest investments to make. Medium income families are plenty in urban areas, especially those with mass transit available. The apartment option will provide an almost guaranteed return in investment. Warehousing is needed for many types of industries, keeping this type of commercial property high on the list. Metro areas are expected to excel suburban office spaces, and are considered a safer investment.

A major factor in the recent mortgage crisis has been poor lending practices. The introduction of $0 down loans and adjustable rate mortgages meant that people were buying homes they could not actually afford. After some time, the rates increased dramatically and the owners were forced to sell or go through foreclosure. The study predicts that these financial institutions will try their hardest to clear the books of bad loans, keeping the foreclosure rates high for some time before finally leveling off. Texas as a whole has been able to keep ahead of many other states in regard to economy and the housing market. Businesses still flock to metro areas here. Though Austin did not make it to the Top Ten List for investment potential, both Dallas and Houston did.