Houston Housing Affordability Sees a Welcome Boost

If you have been on the fence about buying or renting in Houston, here is some good news. Housing and rental affordability both improved in the second quarter of 2025, according to the latest report from the Houston Association of Realtors (HAR).

More Buyers Can Get in the Game

HAR’s Housing Affordability Index shows that 39 percent of Houston households could afford a median-priced home in Q2, up from 37 percent this time last year.

Here is what is helping:

• Median home prices dipped slightly to $349,400, down 0.6 percent year-over-year

• Mortgage rates eased to 6.79 percent from 7.00 percent

• The average monthly payment on a 30-year fixed loan dropped to $2,460 from $2,510, including principal, taxes, and insurance

• The minimum annual income needed to buy fell to $98,400, a 2 percent decrease from last year

Across Texas, affordability also improved, with 39 percent of households able to purchase a median-priced home compared to 36 percent in 2024. Nationally, the picture is tighter. Only 34 percent of households can afford the median-priced home at $429,400.

“While affordability challenges remain for many people, the Houston market is showing encouraging signs of balance,” said HAR Chair Shae Cottar. “Mortgage rates have been edging lower and recently hit their lowest point since April, which could draw more prospective buyers into the market. At the same time, many remain cautious, with inflation playing a key role in their decisions.”

Renters Are Catching a Break Too

The good news is not just for buyers. Forty-six percent of Houston renters could afford the average single-family lease in Q2, up from 43 percent a year ago.

The average lease price for a single-family home dropped 4.1 percent to $2,100. A household earning $84,000 annually could comfortably cover the cost, not including utilities or deposits.

Quick Q2 2025 Snapshot

• 39 percent of Houston households could afford a median-priced home, up from 37 percent

• Median home price: $349,400, down 0.6 percent year-over-year

• Monthly mortgage payment: $2,460, down from $2,510

• Minimum annual income to buy: $98,400, down 2 percent

• Median lease price: $2,100, down 4.1 percent year-over-year

• 46 percent of renters could afford the median lease, up from 43 percent

Thinking About Making a Move?

If you have been waiting for the right time to buy or rent in Houston, this shift in affordability could be your opportunity, especially if mortgage rates continue to trend lower.