More Houston-area households were able to buy a home in the third quarter of 2025 as home prices eased and mortgage rates held steady, according to the latest Housing and Rental Affordability Report from the Houston Association of Realtors.

HAR’s Housing Affordability Index (HAI) shows that 39% of households in the Greater Houston area could afford a median-priced home in the third quarter of 2025, which is unchanged from the second quarter. It is an improvement from 37 percent during the third quarter of 2024. 

The median home price declined 1.9% year-over-year to $341,600, while the average 30-year fixed mortgage rate held steady around 6.5% in the third quarter. The monthly mortgage payment (including principal, taxes and insurance) was $2,510 compared to $2,550 last year. 

To purchase a median-priced home in Houston, households needed to earn a minimum annual income of $100,400, which is down 1.6% versus the same time last year.

Houston’s trend aligns with statewide gains. Across Texas, 42% of households could afford a median-priced home, up from 39% this time last year. A household needed a minimum annual income of $92,400 to qualify for the purchase of a $337,500 home.

Nationwide, home prices continue to climb. The national median home price grew by 1.7% year-over-year to $426,800, according to new data from the National Association of Realtors. NAR reports that home prices increased in 77% of metro areas in the country in the third quarter. Thirty-five percent of households nationwide could afford the median-priced home.

“We’re encouraged to see homebuying become a bit more attainable again,” said HAR Chair Shae Cottar with LPT Realty. “Lower mortgage rates and home prices are helping open the door for more Houstonians. While affordability is still a challenge, especially for first-time homebuyers, Houston and Texas continue to be among the more affordable markets nationwide. Continued rate relief will be key in helping even more buyers achieve their goals of homeownership.”

Rental Affordability Update

Due to steady pricing and growing wages, 45% of Houston-area renters could afford the average lease price for a single-family rental home in the third quarter, according to HAR’s Rental Affordability Index. That is up from 43% the prior year. The average lease price for a single-family home was statistically unchanged at $2,200. This does not include the security deposit or cost of utilities.

Highlights of the Q3 2025 Housing & Rental Affordability Report:

• 39% of households in the Greater Houston area could afford a median-priced home in the third quarter of 2025, which is up from 37% last year.

• The median home price was $341,600, which is down 1.9% year-over-year.

• The monthly mortgage payment on a 30-year fixed-rate loan, including principal, taxes and insurance, was $2,510 compared to $2,550 last year.

• Households needed to make a minimum annual income of $100,400 to buy a median-priced home, which is down 1.6% year-over-year.

• The median lease price in the Houston area was statistically flat at $2,200.

Editor’s note: The HAR report, lightly edited, is used by permission. Find the full report at https://www.har.com/content/department/mls.