Households needed to make $94,400 to buy a Houston-area home, a 4.1% decrease year over year, according to the report.
The details
The average mortgage rate fell to 6.63% in the fourth quarter and the average monthly payment on a fixed 30-year mortgage dropped to $2,360 from $2,460, leading to lower housing costs, according to the report.
The median home price in the fourth quarter increased 1.1% year over year to $340,200, according to the report.
Also of note
While the minimum income needed to purchase a single-family home decreased in the final quarter of 2024, the average monthly lease payment increased across most of the Houston area, according to the report.
The Houston metro area saw a 5% rise year over year in monthly lease payments, while counties like Fort Bend saw a 2.2% rise, according to the report.
45% of Houston households in the area earned the $84,000 minimum annual income required to afford the median lease payment, which does not include the security deposit or cost of utilities, according to the report.
Zooming out
In Texas, 39% of households could afford a median-priced home in the fourth quarter of 2024, according to the report—a 3% increase year over year.
Other major metros in the state like Austin, Dallas and San Antonio all saw the minimum annual income to purchase a single-family home decrease, according to the report.
The national median home price climbed 4.8 percent year over year to $410,100, according to the report.
“The continued improvement in affordability is welcome news for Houstonians looking to achieve the dream of owning a home,” said HAR Chair Shae Cottar in the report. “Moderating home prices and easing mortgage rates are creating more opportunities for buyers, but many still face challenges.”
