Improved mortgage rates and softening home prices meant that close to half of Houston-area households could afford a median-priced home at the end of 2025, according to the quarterly Housing and Rental Affordability Report from the Houston Association of REALTORS®.
As mortgage rates fell to 6.23%, the median home price decreased 0.9% year over year to $337,200 during the fourth quarter. Given those numbers, the typical monthly homeownership cost — including mortgage payment, principal, taxes and insurance — was $2,280, down from $2,490 a year prior.
Houston households needed an annual salary of $91,200 to afford those monthly costs, down 3.4% year over year. That meant that 44% of households could afford homeownership, up from 40% in Q4 2024.
“After a challenging few years for buyers, we’re starting to see affordability move in the right direction,” said HAR Chair Theresa Hill. “If these trends continue, we could see even more opportunities open up for buyers as we move through 2026.”