Houston housing affordability: Median home price around $337K as buyers look to suburbs for deals

HOUSTON - Buying a home in the Houston area may be getting slightly easier, but affordability is still a major hurdle for many families.

A new report from the Houston Association of Realtors (HAR) shows that while home prices and mortgage rates have cooled slightly, many households still struggle to afford the region’s median-priced home.

What we know:

According to HAR, the median home price in the Houston area is about $337,200, a slight decrease of about 0.9% year over year. The change has helped improve affordability somewhat as more homes come onto the market and borrowing costs ease.

Mortgage rates have also declined from earlier highs. The average 30-year mortgage rate dropped from about 6.9% to roughly 6.1%, helping reduce monthly payments for buyers. Even with those improvements, affordability remains a challenge for many Houstonians.

Income needed to buy :

To purchase a median-priced home in the region, households need to earn about $91,200 per year, according to the HAR affordability report. That estimate assumes typical housing costs — including principal, interest, property taxes and insurance — which total about $2,280 per month for a median-priced home. The report found that 44% of Houston-area households can afford a median-priced home, an improvement from about 40% the year before. Still, that means the majority of households — about 56% — cannot afford the median home at current prices and interest rates.

Buyers expand to other areas:

Real estate experts say one way buyers are adjusting is by expanding their search beyond central Houston.

Homes farther from the city often come with lower price tags and more new construction options, which can make them more attainable for first-time buyers.

Suburban communities and developing neighborhoods have seen increased interest as buyers look for homes within their budget.

The monthly payment matters:

Experts say one of the biggest misconceptions among buyers is focusing only on the listing price of a home.

In reality, the monthly payment is influenced by several factors including:

• Home price
• Interest rate
• Property taxes
• Homeowners insurance

Those costs vary significantly depending on the location of the home and the buyer’s loan terms.

In Southeast Texas especially, insurance costs can significantly affect the final monthly payment.

Houston's Affordability:

Despite ongoing affordability concerns, Houston remains relatively more affordable than many large U.S. housing markets.

Prices in cities such as Los Angeles and New York are often significantly higher for homes located near city centers.

The region’s large housing supply and continued home construction have helped keep prices more stable than in many other metropolitan areas.

Housing affordability in Houston has improved slightly compared to recent years, but the path to homeownership remains difficult for many buyers.

Experts say prospective buyers should consider the full cost of ownership — including taxes and insurance — and get pre-qualified early to understand what they can realistically afford.