Houston Housing Market Outlook – June 2025

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By Quiana Toliver | HEAT Realty | Houston, Texas

Hello, Houston! As we step into the summer of 2025, the local housing market is showing signs of balance and opportunity. Whether you're buying, selling, or investing, here's what you need to know about the current landscape.

Market Snapshot: Stability with a Shift Toward Buyers

According to the Houston Association of Realtors (HAR), the median home price in Houston reached $325,000 in January 2025, marking a modest increase from the previous year. This price point indicates a balanced market—offering buyers strong value while maintaining equity for homeowners.

Single-family home sales in Greater Houston rose 1.2% in January 2025 compared to January 2024, with 5,064 homes sold. This marks the fifth consecutive month of sales growth—something not seen since early 2021—highlighting sustained momentum in the market.

Inventory on the Rise: More Options for Buyers

Houston is experiencing an increase in housing supply, with inventory levels expanding from a 3.3-month supply in December 2023 to 4.0 months in December 2024. This trend is expected to continue, with the market potentially reaching the highest inventory levels in the last eight years.

Key drivers of this increased inventory include:

  • New Construction: Builders are completing projects initiated during the housing boom, particularly in suburban markets like Cypress, Katy, and Richmond.

  • Lingering Listings: Elevated mortgage rates have slowed buyer activity, leading to longer days on market for some properties and increased overall inventory levels.

  • Market Adjustments: Sellers are becoming more realistic about pricing, which is helping to clear out previously stagnant listings.

Mortgage Rates and Affordability

Mortgage interest rates are expected to average around 5.5% by the end of 2025. This anticipated decline in rates is expected to restore some confidence in buyers who have been on the sidelines due to affordability concerns.

According to a new report by Zillow, residents in the Greater Houston area need to earn over $67,000 annually to afford the typical monthly rent of $1,693 as of April 2025. This figure underscores the growing financial burden of housing and highlights the importance of aligning income growth with rising living expenses.

Neighborhoods to Watch

Areas like Cypress, The Woodlands, Katy, Pearland, and Sugar Land are seeing rapid population growth as families and professionals seek more value for their money. Developers are investing heavily in new master-planned communities in these regions, offering more housing inventory at competitive prices, better access to top-rated schools, and growing retail, dining, and entertainment options.

Looking Ahead

While the market is currently experiencing a shift toward a buyer's market, Houston's real estate outlook remains positive. Economic stability, job growth, and continued demand for housing in suburban areas suggest that the market will maintain its resilience throughout 2025 and beyond.

Let’s Connect

If you're considering buying, selling, or investing in Houston's housing market, I'm here to help you navigate the current landscape and make informed decisions. Reach out today, and let's discuss how we can achieve your real estate goals together.

Quiana Toliver
Realtor®, HEAT Realty
Phone: (346) 254-4816
Email: quianatoliver@gmail.com
Website: homesbyquiana.com

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