Cypress Edition | March 2025

Real estate

BY CARSON WEAVER

Houston housing aordability improves for 2nd quarter in a row

Housing aordability in Houston improved for the second quarter in a row, with 40% of Hous- ton-area households able to purchase a medi- an-priced single-family home in the fourth quarter of 2024, according to the Houston Association of Realtors’ Q4 Housing and Rental Aordability report released Feb. 6. 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 in the Greater Hous- ton area fell to 6.63% in the fourth quarter, and the average monthly payment on a ‡xed 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 Greater Houston area increased 1.1% in the fourth quarter of 2024 to $340,200, according to the report.

Housing aordability in the Houston metro, Q4 2024

Median home price

Median qualifying income

Median qualifying income percentage change from Q4 2023

$400,000 $100,000 $300,000 $200,000

$0

Houston metro

Harris County -10.4%

Brazoria County

Galveston County

Fort Bend County

Montgomery County

-4.1%

-1.8%

-5.2%

-6.6%

-9.1%

SOURCE: HOUSTON ASSOCIATION OF REALTORS’ Q4 HOUSING AND RENTAL AFFORDABILITY REPORTCOMMUNITY IMPACT

welcome news for Houstonians looking to achieve the dream of owning a home,” HAR Chair Shae Cottar said via the report. “Moderating home prices and easing mortgage rates are creating more opportunities for buyers, but many still face challenges.”

Zooming out In Texas, 39% of households could aord a median-priced home in the fourth quarter of 2024, per the report—a 3% increase year over year. What they’re saying “The continued improvement in aordability is

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