Homebuyers in the Greater Houston area experienced some welcome relief during the first quarter of 2026 as affordability conditions improved compared to a year earlier. Easing home prices and mortgage rates made homeownership more attainable for some households, according to the latest Housing and Rental Affordability Report from the Houston Association of Realtors.

HAR’s Housing Affordability Index showed that 42% of Houston-area households could afford a median-priced home during the first quarter of 2026, up from 37% during the same period in 2025.

The median home price declined 1.7% year over year to $331,500, while the average 30-year fixed mortgage rate was 6.18% during the quarter. The typical monthly mortgage payment — including principal, taxes and insurance — fell to $2,400, down from $2,580 one year earlier.

On average, households needed to earn at least $96,000 annually, a 7.0% decrease from the same time last year, to afford a median-priced home.

“The improvement in affordability is encouraging for prospective buyers who have faced several years of rising costs and higher mortgage rates,” said HAR Chair Theresa Hill with Compass RE Texas, LLC – Houston. “At the same time, ongoing geopolitical tensions and broader economic uncertainty could continue to influence mortgage rates and overall housing costs in the months ahead.”

Across Texas, 42% of households could afford a median-priced home during the first quarter, up from 37% in 2025. Buyers statewide needed a minimum annual income of $93,600 to purchase a $330,000 home.

Affordability also improved nationwide as the national median home price rose to $404,300 in the first quarter, up by just 0.5% year over year, according to new data from the National Association of REALTORS®.

Rental Affordability Update

HAR’s Rental Affordability Index showed modest improvement in the rental market as well. During the first quarter of 2026, 47% of Houston-area renters could afford the average lease price for a single-family rental home, up from 46% during the same period last year.

The average lease price for a single-family rental home declined 1.2% year over year to $2,050. The figure does not include security deposits or utility costs.

Highlights of the Q1 2026 Housing & Rental Affordability Report:

  • 42% of households in the Greater Houston area could afford a median-priced home in the first quarter of 2026, which is up from 37% in 2025.
  • The median home price was $331,500, which is down 1.7% year over year.
  • The monthly mortgage payment on a 30-year fixed-rate loan, including principal, taxes and insurance, was $2,400 compared to $2,580 in 2024.
  • Households needed to make a minimum annual income of $96,000 to buy a median-priced home, which is down 7.0% year-over-year.
  • The median lease price in the Houston area declined 1.2% to $2,050.

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

 

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