A luxury home in Houston. (Artistic Operations/Shutterstock)
While the housing market might be looking up for some, certain Houston ZIP codes are still seeing sky-high prices.
According to an August report released by the Houston Association of Realtors, 39% of Houstonians could afford to buy a median-priced home—priced at $349,400—during the months of April, May, and June this year compared to 37% during the same time period in 2024.
“It’s certainly encouraging to see the housing affordability improve, even if it is slightly,” said incoming HAR Chair Theresa Hill. “But we still have to remember that the dream of home ownership is still out of reach for the majority of households in Houston.”
The median income needed to buy a house in Houston also changed in buyers’ favor, with the minimum average income only needing to be $98,400 compared to the six-figure income required this time last year.
However, according to data from Zillow presented by the Houston Chronicle, ZIP codes 77024, 77401, and 77005 had typical home values over $1 million, and have only continued to climb in price since 2020. Two of these ZIP codes are in the Bellaire/West University Place area, which has been identified as an affluent and wealthy neighborhood.
“While affordability challenges remain for many people, the Houston market is showing encouraging signs of balance,” said HAR Chair Shae Cottar with LPT Realty. “Mortgage rates have been edging lower and recently hit their lowest point since April, which could draw more prospective buyers into the market. At the same time, many remain cautious, with inflation playing a key role in their decisions.”
Housing has, in general, become unaffordable due to many reasons, but one distinct reason is due to climate change. A report from the Kinder Institute showed that high home insurance due to flood risk can increase home ownership by almost $15,000.
