Between the continuing coronavirus pandemic, and supply and labor shortages, housing construction has been sluggish in Houston, according to a January 2022 report from the Houston Association of Realtors.
Despite fewer available homes, demand in 2021 led to a record-breaking year for the real estate market, with HAR reporting more than $40 billion being spent, a 28.2% increase from 2020. Even though the year set new highs, single-family home sales were actually down 4.5% in December 2021 when compared to December 2020.
The average price of single-family homes came in at $392,449, an increase of 13.5% from the previous year, according to the release. Townhouses and condominiums maintained the year-to-year trend of increased sales, with average prices reaching $258,139, a 13.8% increase.
“Limited inventory and shortages of building supplies and labor on the new construction side also posed serious challenges, but the market powered through it all to achieve a record year,” HAR Chair Jennifer Wauhop said with Better Homes and Gardens Real Estate.