New data from the Houston Association of Realtors shows median home sales in September of 2024 at $333,000 compared to September 2025 at $327,000, that is a 2.1 percent decrease in favor of the buyers.
Real Estate Economist Ted C. Jones points to Houston’s home builder value and affordability, job market, and housing supply for both buyers and renters. In 2024 there was more supply than demand, “this caused prices to go up because they just did not need to sell. People are willing to pay a premium for it.” Jones said.
Jones says there is a great balance in supply and demand with a rate of 5.2 months of inventory which helps both the consumer and the seller. He says this balance helps the consumer.
“What I will say about Houston is we have a good fundamental economy. As a result, we have more people in Houston working today making more money than they ever made before. This shows up in retail spending in our home prices. So, what we have here is what I would call a normal housing market, Thank Heavens! We do not want boomer busts- they are not sustainable. It is nice to take a breather after the wildness and craziness when our interest rate went down to 2 to 3 percent.” He said.
The real estate economist says a more balanced interest rate is best allowing more people to borrow, providing a longer-term sustainable economy.
The HAR.com data also indicated rent prices have also fallen to $2100 a month, down by a little more than 4 percent of last year. The report also showed the minimum household income was $98,400 to afford a median home price and $84,000 to afford an average lease price.