There are some interesting things happening in the world of real estate all across the US. Houston is especially interesting to take notice of, because there has been an influx of people moving from various states to Texas over the last 12 to 18 months. This has caused some market changes, which we’ll mention in this article. Here are some interesting facts, stats, and trends about Houston’s real estate arena.
Home Availability Has Dropped
According to Houston Properties, house availability in Houston is at a 13-year low. This means there are fewer houses in the inventories of real estate agents, and also fewer options for those looking to up or downscale their living arrangements.
The reason for this quick drop in home availability is the influx of more people into the state of Texas. New corporate initiatives (especially those created by Exxon and Chevron) have created thousands of jobs, a booming economy, and a higher necessity for relocation both within Texas and from outside of the state.
Home Demand Has Increased
With less home availability, demand for new homes has also increased. In general, this is a good sign of a growing economy in Houston. But for those looking to relocate within the state, it can be a frustrating process to buy a home.
This affects a number of other real estate sub-factors:
- Home insurance in Houston is higher than the national average
- Building material supply is running out faster than it can be replaced
- Rental costs are going up and will continue to rise in the near future
- Airbnb prices have gone up due to the high demand for temporary housing
While many residents in Houston are enjoying new, higher-paying jobs, those whose salaries are remaining the same might begin to struggle to keep up with rising costs across different living expense categories.
House Prices Have Gone Up (a Lot!)
As we’ve seen, the demand for houses has gone up, while the availability of homes has dropped. This inevitably creates higher competition, causing house prices to go up. A whopping 6.5% house price increase has hit the city of Houston within recent months, and this may go up even further unless construction for new homes speeds up. But, as we’ll see in the next interesting fact about real estate in Houston, this is not the case in 2025.
Construction Has Slowed Down
There’s no doubt that the construction industry is smiling all the way to the bank in Houston. But many construction companies are also struggling to keep up with new developments. According to MMG, rental costs will continue to go up all the way into 2026.
That’s because there just aren’t enough supplies for construction companies to effectively develop new homes, apartment buildings, and living complexes. Wood, steel, and mortar supplies are at an all-time low in terms of their availability in Houston, making 2025 and 2026 teething years for this state’s growing economy.
Condos, Apartments and Townhouses are in High Demand
Since the housing market is relatively untenable for new buyers, many are resorting to renting apartments or townhouses as a temporary solution. But this is another market that’s becoming quickly saturated, with more and more people looking for places to stay. This also causes rents to go up at a fast rate, since landlords have the discretion and freedom to charge more thanks to the high demand.
Around 119,000 New Jobs Have Been Created in the Past 12 Months
When large corporations create thousands of new jobs, other industries quickly begin to do the same. With more people coming into Texas, you’d think the unemployment rate would go down. But the opposite is true! More and more industries are looking for employees.
So even though the home availability has gone down, job availability is soaring, which can create a bit of an imbalance—for now. Around 119,000 jobs have been created within just 12 months, and this number is set to increase.
Property Value Retention is Projected to Stay Very Stable
For those who already own a home in Texas, these projections and facts about the Houston real estate market are good news. Houston is now considered to be one of the most stable housing investment markets in the US, with an average maximum of 5% loss on house sales this year. This makes Texas a low-risk state for home investments, since prices are more likely to rise rather than fall within the next several years.
Final Thoughts
Political and corporate factors have drawn thousands to Houston. With new jobs being created by major corporations, combined with the conservative nature of Texans, this is a significant teething process of an economy that’s set to peak within a year or two. If you’re planning to move to Houston, make sure your house search has taken place beforehand. It’s a rush out there!
If you want to learn more about Houston Real Estate, reach out to Jennifer Yoingco, REALTOR®, and her team, The Houston Suburb Group. They’ll help you get ready to EXPERIENCE LIVING IN HOUSTON TEXAS!
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