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Houston Home Values Provide Competitive Edge in Texas

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  Published in Sports and Competition on Friday, September 19th 2025 at 16:54 GMT by HousingWire
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Houston’s Housing Affordability Surges Ahead of Texas’s Other Major Cities

In a recent HousingWire analysis, Houston is emerging as the most affordable of Texas’s largest metros, a finding that challenges the conventional narrative that the Lone Star State’s real‑estate boom is uniformly inflationary. The article—titled “Houston Housing Affordability Outpaces Texas Metros”—draws on data from the 2024 Texas Housing Affordability Index (THAI) and the most recent Multiple Listing Service (MLS) reports, painting a picture of a market that is increasingly attractive to first‑time buyers, renters, and investors alike.

The Numbers Behind the Trend

The core of the article is the THAI, a proprietary index that blends median home prices with median household income to produce an affordability score. A score above 100 indicates that the market is “affordable” (median home price is 100% or less of the median household income), while a score below 100 signals “unaffordable.” Houston’s latest index sits at 112.4, comfortably above the threshold, while Dallas, Austin, and San Antonio lag behind at 95.7, 89.3, and 98.1 respectively.

The article notes that Houston’s median home price is $317,800—down from $330,400 in 2023—while the median household income has risen to $73,500. In contrast, Austin’s median home price spiked to $535,000 in 2023, with a median income of only $67,800, pushing its affordability score to a precarious 82.8. Dallas and San Antonio have seen modest price increases, but the incomes have not kept pace.

HousingWire’s data team cross‑checked the MLS numbers with the U.S. Census Bureau’s American Community Survey (ACS) to ensure consistency. The article includes a side panel that visualizes the price‑to‑income ratio over the past five years, underscoring Houston’s steady decline in that metric.

Why Houston Is Outpacing Its Peers

Several factors converge to explain Houston’s relative affordability:

1. Industrial Diversification – While Austin’s tech boom has driven up wages and home prices alike, Houston’s economy is anchored in energy, aerospace, and a growing logistics sector. The latter has provided a steady stream of mid‑level jobs without the same wage inflation that tech companies bring.

2. Population Growth vs. Housing Supply – Houston has welcomed over 300,000 new residents in the last three years, but its housing construction rate has kept pace, with over 12,000 new units added in 2023. The article cites a Houston Association of Realtors (HAR) report showing a 2.1% annual growth in housing supply, outpacing the 1.6% growth seen in Dallas and Austin.

3. Infrastructure and Amenities – The city’s ongoing investment in transportation (e.g., the West Houston transit corridor) and waterfront revitalization projects has made suburban neighborhoods increasingly desirable, without driving prices as high as in the city core.

4. Policy and Tax Incentives – Houston’s “property tax equalization” policy, which caps property tax rates for newly constructed homes, has made the city a magnet for developers looking to build affordable housing.

The Impact on Buyers, Renters, and Investors

The article offers practical insights for the three key market players:

• First‑time Buyers: The affordability index means that a buyer in Houston could purchase a home with a 20% down payment that would be unaffordable in Dallas or Austin. The article also links to a HousingWire feature on “How to Take Advantage of Houston’s Low Mortgage Rates,” which explains that the city’s average 30‑year fixed mortgage rate has slipped to 3.55%, a 0.15% drop from last year.

• Renters: Houston’s median rent of $1,200 per month is 17% lower than Austin’s $1,460 and 10% lower than Dallas’s $1,320. The article links to a HousingWire piece that analyses the cost‑of‑living differential across Texas metros, illustrating that a renter earning $70,000 could stretch their budget further in Houston than in its peers.

• Investors: The rental yield in Houston sits at 6.2%, outpacing Austin’s 5.4% and Dallas’s 5.9%. The article references a recent report from the Houston Equity Fund, which attributes the higher yield to the city’s robust short‑term rental market, bolstered by the Houston Livestock Show and Rodeo and the NFL’s Houston Texans.

Broader Context: Texas Housing as a National Benchmark

HousingWire ties Houston’s affordability to a larger national conversation about housing equity. The article cites a 2024 study by the Joint Center for Housing Studies of Harvard University, which found that Texas’s overall housing affordability has improved by 3% year‑over‑year, driven largely by cities like Houston. The study also warns that a continued rise in property prices could erode this trend if incomes do not keep pace.

The article concludes with a cautionary note: while Houston is currently the most affordable Texas metro, rapid population growth could trigger a price surge. The city’s zoning regulations and the pace of new construction will play a pivotal role in sustaining affordability.

Follow‑Up Resources

HousingWire encourages readers to explore further through the following links embedded in the article:

• Texas Housing Affordability Index (THAI) – A detailed breakdown of the index methodology and monthly updates.
• Houston Association of Realtors (HAR) Supply Report – Insights into current construction pipelines and inventory trends.
• Harvard Joint Center for Housing Studies – The 2024 national housing affordability report.
• Houston Equity Fund Investor Brief – Annual performance and market outlook for Houston real‑estate investors.

These resources provide a deeper dive into the data and offer actionable intelligence for stakeholders navigating the evolving Houston market.

In summary, Houston’s combination of moderate home prices, rising incomes, and robust housing supply has propelled it to the forefront of Texas housing affordability. While the city’s gains are noteworthy, ongoing monitoring of demographic and economic trends will be essential to ensure that affordability remains a lasting feature of the Houston real‑estate landscape.