While regional home prices have trended upward, in The Woodlands market homes above $1 million increased from about 4.6% in 2019 to nearly 14% of listings as of 2023, according to multiple listing service housing activity tracked by Texas A&M University's Texas Real Estate Center.
Local Realtor Diane Kink, founder of The Kink Team, said this reflects the relative affordability of houses in Texas, as the higher-priced homes in The Woodlands are still priced below comparable homes in other markets.
"[The Woodlands has] a desirable price point compared to other states, so that is driving our price up," Kink said.
The appeal of standards of living in The Woodlands community means the market for homes over $1 million is competitive, and inventory for those homes is typically low in the region, she said.
"I’m seeing we are selling more luxury homes over $1 million than I’ve seen in my 25-year career, and it’s not just The Woodlands," Kink said. "I have to think and believe since we went through a three-year period with COVID[-19], a lot of clients made the decision, 'Why wait to get the home of our dreams?'"
Diving in deeper
The Woodlands has a higher percentage of high-priced homes compared to housing activity in the metropolitan area of Houston-Pasadena-The Woodlands, according to data from Texas A&M University. In the Greater Houston metropolitan region, homes listed for $1 million and higher comprised 3.57% of the market in 2023, up from 2.05% in 2020. Across the Greater Houston region studied by Texas A&M, in 2023 a total of 60.2% of home listings were $300,000 or higher, up from 37.94% of home listings in 2020. However, in The Woodlands, the increase in housing activity among homes priced at $300,000 and above increased from 69.24% to 89.98% of listings.
Major takeaways
As home listings above $300,000 dominate the market in The Woodlands and the surrounding area, lower-priced homes are increasingly scarce, Kink said.
"To find a home under $400,000 is extremely challenging," she said. "Even under $500,000, those first-time homebuyers need to be a little more open to buying something affordable to them that might need some updating."
Despite the higher prices, home sizes are not necessarily larger, she said.
"People are downsizing to get something smaller and keep a footprint here but have a home in a beach or mountain town, so that causes a secondary market for a downsized home," Kink said.
Editor's note: This story was updated to clarify that Texas A&M University data was based on information from multiple listing services.
