Houston, TX Real Estate Market

Source & Methodology

Analytics built by:   Location, Inc.

Raw data sources:   American Community Survey (U.S. Census Bureau), U.S. Department of Housing and Urban Development, Federal Housing Finance Agency.

Date(s) & Update Frequency:
  • Home Values, Rents: Reflects Q2 2021. Updated quarterly.
  • Setting, Housing Stock, Homeownership: 2019 (latest available). Updated annually.

Methodology:   NeighborhoodScout uses over 600 characteristics to build a neighborhood profile… Read more about Scout's Real Estate Data

Houston, TX Housing Market Trends

With 2,320,268 people, 858,374 houses or apartments, and a median cost of homes of $175,582, house prices in Houston are solidly below the national average.

Large apartment complexes or high rise apartments are the single most common housing type in Houston, accounting for 44.39% of the city's housing units. Other types of housing that are prevalent in Houston include single-family detached homes ( 43.99%), duplexes, homes converted to apartments or other small apartment buildings ( 5.56%), and a few row houses and other attached homes ( 5.14%). Cities with mostly row houses, apartments, and other high density housing types are relatively uncommon, and characteristic of compact cities that frequently have a downtown or other neighborhoods where amenities are within walking distance and a lot of street life can be seen.

People in Houston primarily live in small (one, two or no bedroom) units, chiefly found in large apartment complexes or high rise apartments. Houston has a mixture of owner-occupied and renter-occupied housing.

There is a lot of housing in Houston built from 1970 to 1999 so parts of town may have that "Brady Bunch" look of homes popular in the '70s and early '80s, although some of these houses were built up through the early '90s as well. There is also a lot of housing in Houston built between 1940-1969 ( 28.21%). A lesser amount of the housing stock also hails from between 2000 and later ( 22.00%). There's also some housing in Houston built before 1939 ( 4.28%).

Vacant housing appears to be an issue in Houston. Fully 11.39% of the housing stock is classified as vacant. Left unchecked, vacant Houston homes and apartments can be a drag on the real estate market, holding Houston real estate prices below levels they could achieve if vacant housing was absorbed into the market and became occupied. Housing vacancy rates are a useful measure to consider, along with other things, if you are a home buyer or a real estate investor.

Houston Home Appreciation Rates

In the last 10 years, Houston has experienced some of the highest home appreciation rates of any community in the nation. Houston real estate appreciated 68.22% over the last ten years, which is an average annual home appreciation rate of 5.34%, putting Houston in the top 20% nationally for real estate appreciation. If you are a home buyer or real estate investor, Houston definitely has a track record of being one of the best long term real estate investments in America through the last ten years.

Over the last year, Houston appreciation rates have trailed the rest of the nation. In the last twelve months, Houston's appreciation rate has been 4.38%, which is lower than appreciation rates in most communities in America. In the latest quarter, NeighborhoodScout's data show that house appreciation rates in Houston were at 1.47%, which equates to an annual appreciation rate of 6.03%.

Notably, Houston's appreciation rate in the latest quarter is one of the lowest in America.

Relative to Texas, our data show that Houston's latest annual appreciation rate is lower than 90% of the other cities and towns in Texas.

One very important thing to keep in mind is that these are average appreciation rates for the city. Individual neighborhoods within Houston differ in their investment potential, sometimes by a great deal. Fortunately, you can use NeighborhoodScout to pinpoint the exact neighborhoods in Houston - or in any city or town - that have the best track record of real estate appreciation, by the latest quarter, the last year, 2 years, 5 years, 10 years, or even since 2000, to assist you in making the best Houston real estate investment or home purchase decisions.

Average Home Values

 

Median Home Value:
$175,582

Houston, TX HOME PRICES

> $1,151,000
2.6%
2.6%
$863,001 - $1,151,000
2.2%
2.2%
$575,001 - $863,000
5.6%
5.6%
$460,001 - $575,000
4.4%
4.4%
$345,001 - $460,000
7.9%
7.9%
$230,001 - $345,000
13.3%
13.3%
$115,001 - $230,000
34.7%
34.7%
$58,001 - $115,000
22.5%
22.5%
$0 - $58,000
6.7%
6.7%
0.0% 100.0%
% OF HOMES
Value Relative To State

Average for Nation

Average for TX

Value Relative To Nation

Number Of Homes And Apartments:
858,374

Houston Appreciation Rates

 
Time Period Total Appreciation Avg. Annual Rate Compared To
TX*
Compared To
America*
Latest Quarter:
2021 Q1 - 2021 Q2
Last 12 Months:
2020 Q2 - 2021 Q2
Last 2 Years:
2019 Q2 - 2021 Q2
Last 5 Years:
2016 Q2 - 2021 Q2
Last 10 Years:
2011 Q2 - 2021 Q2
Since 2000:
2000 Q1 - 2021 Q2
133.13% 4.02%
7
9
* 10 is highest

Rent & Ownership

 

Average Market Rent:
$1,318 / per month

Homeownership Rate

Owners
41.7%
41.7%
Renters
58.3%
58.3%
Vacant
11.4%
11.4%
0.0% 100.0%
% OF HOMES

Housing Market Details

 

Age of Homes

2000 or Newer
22.0%
22.0%
1970 - 1999
45.5%
45.5%
1940 - 1969
28.2%
28.2%
1939 or Older
4.3%
4.3%
0.0% 100.0%
% OF HOMES

Types of Homes

Single-Family
44.0%
44.0%
Townhomes
5.1%
5.1%
Small Apt. Buildings
5.6%
5.6%
Apt. Complexes
44.4%
44.4%
Mobile Homes
0.9%
0.9%
Other
0.0%
0.0%
0.0% 100.0%
% OF HOMES

Home Size

No Bedroom
3.3%
3.3%
1 Bedroom
24.9%
24.9%
2 Bedrooms
29.4%
29.4%
3 Bedrooms
29.3%
29.3%
4 Bedrooms
11.0%
11.0%
5 or more bedrooms
2.1%
2.1%
0.0% 100.0%
% OF HOMES