By the numbers
According to HAR’s housing affordability index, 39% of households in the Greater Houston area could afford to buy a median-priced home in the third quarter compared to 37% at the same time last year. The figure remained unchanged from the second quarter of this year, per the report.
Households needed a minimum annual income of $100,400 to purchase a median-priced home in Greater Houston, according to the report. The median home price in the area declined 1.9% to $341,600 compared to this time last year. Mortgage rates held steady at approximately 6.5%, the report found.
Another detail
As for renters in the Greater Houston area, 45% could afford to lease a single-family rental home in the third quarter compared to 43% last year, according to the affordability index. The index did not include the cost of security deposit or utilities, per the report.
Single-family home lease prices in Harris County and Montgomery County decreased slightly compared to the same time last year, and prices in Fort Bend County did not change.
Zooming out
Third quarter trends for 2025 in Greater Houston align with statewide data, as slightly more households across Texas were able to afford a median-priced home compared to last year, the report found.
However, home prices climbed nationally in the same time frame, with only 35% of households across the United States able to afford the median-priced home, according to the National Association of Realtors.
Quote of note
“Lower mortgage rates and home prices are helping open the door for more Houstonians,” HAR Chair Shae Cottar said in a Nov. 6 statement. “While affordability is still a challenge, especially for first-time homebuyers, Houston and Texas continue to be among the more affordable markets nationwide. Continued rate relief will be key in helping even more buyers achieve their goals of homeownership.”
