44% of Houston-area households were able to buy a home in the fourth quarter

Homeownership became more attainable for many Houston-area residents at the end of 2025 as easing home prices and lower mortgage rates improved affordability across the region, according to the latest Housing and Rental Affordability Report from the Houston Association of Realtors.

HAR’s Housing Affordability Index (HAI) indicates that 44 percent of households in the Greater Houston area could afford a median-priced home in the final quarter of 2025, which is an improvement from 40 percent during the fourth quarter of 2024.

The median home price declined 0.9 percent year-over-year to $337,200, while the average 30-year fixed mortgage rate came in at 6.23 percent during the fourth quarter. The monthly mortgage payment (including principal, taxes and insurance) was $2,280, which is down from $2,490 one year earlier.

To afford a median-priced home in Houston, households needed to earn at least $91,200 annually, a 3.4 percent decrease from the same time last year.

Affordability also improved across Texas. Statewide, 43 percent of households could afford a median-priced home, up from 39 percent in 2024. Buyers needed a minimum annual income of $90,000 to purchase a $334,000 home.

The national median home price rose 1.2 percent year-over-year to $414,900, according to new data from the National Association of Realtors. Thirty-eight percent of households nationwide could afford the median-priced home.

The chart below shows how the minimum annual household income needed to purchase a home has changed year-over-year.

“After a challenging few years for buyers, we’re starting to see affordability move in the right direction,” said HAR Chair Theresa Hill of Compass RE Texas, LLC – Houston. “If these trends continue, we could see even more opportunities open up for buyers as we move through 2026.”

Rental Affordability Update

Forty-eight percent of Houston renters could afford the average lease price for a single-family rental home in the fourth quarter of 2025, according to HAR’s Rental Affordability Index. That is up from 45 percent the prior year.

The average lease price for a single-family home declined 2.4 percent to $2,050. This does not include the security deposit or cost of utilities.

The chart below shows how the median lease price for a single-family home has changed year-over-year.

Highlights of the Q4 2025 Housing & Rental Affordability Report:

  • 44% of households in the Greater Houston area could afford a median-priced home in the fourth quarter of 2025, which is up from 40% in 2024.
  • The median home price was $337,200, which is down 0.9% year-over-year.
  • The monthly mortgage payment on a 30-year fixed-rate loan, including principal, taxes and insurance, was $2,280 compared to $2,490 in 2024.
  • Households needed to make a minimum annual income of $91,200 to buy a median-priced home, which is down 3.4% year-over-year.
  • The median lease price in the Houston area declined 2.4% to $2,050.

For HAR’s full Housing and Rental Affordability Reports and data tables, click HERE.