Houston, TX Housing Market
AI-powered market intelligence for the Houston-Pasadena-The Woodlands, TX metro area.
PropertyIQ Scores
Houston, TX Market Analysis
Market Overview
Houston’s housing market is showing weak conditions, with a PropertyIQ Score of 22 out of 100. The score is driven by negative home value momentum over both the 12-month and 3-month periods, a median days on market of 52 days, and a relatively high share of listings with a price cut at 21.3 percent. These indicators point to a market where seller leverage is limited and buyers have more room to negotiate. The median home value in Houston is $305,001, which is slightly above the state average of $299,367, but that modest premium has not been enough to lift the overall market score.
Compared with state benchmarks, Houston presents a mixed profile. The rent index of $1,643 is well above the state average of $1,403, and the median household income of $82,168 exceeds the state figure of $78,476. However, the unemployment rate of 5.1 percent is higher than the state average of 4.5 percent, which may be weighing on local housing demand. While incomes and rents are relatively strong, the soft price momentum and slower sales pace suggest that current demand is not absorbing supply quickly enough to support home values.
Key Trends
One clear trend is weakening home value momentum. The 3-month home value momentum is -1.50 percent, a sharper decline than the 12-month figure of -0.36 percent. The year-over-year change in home value is -$2, essentially flat in dollar terms but consistent with a market that has lost recent upward price pressure. This pattern suggests that price softness has become more pronounced in the most recent quarter.
A second trend is supply moving ahead of demand. There are 35,920 homes for sale, and the median days on market is 52 days. More than one in five listings, 21.3 percent, has had a price cut. Together, these numbers indicate that homes are taking longer to sell and sellers are adjusting prices to attract buyers. This is a meaningful shift toward a buyer-friendly environment.
A third trend is a rental market that remains stronger than the state average. Houston’s rent index of $1,643 is $240 above the state average of $1,403, or roughly 17 percent higher. That relative strength in rents, combined with a median home value only modestly above the state average, may keep rental demand relevant even as for-sale price momentum softens.
Finally, affordability signals are mixed. The median household income of $82,168 is above the state average of $78,476, which supports some purchasing power. But the unemployment rate of 5.1 percent is above the state average of 4.5 percent, meaning labor market softness may be offsetting income advantages for some prospective buyers.
Who Is This Market For
This market is likely better suited to buyers who can take advantage of weaker seller positioning rather than to sellers looking for rapid appreciation. First-time buyers may find opportunity in a median home value of $305,001, especially with household incomes above the state average, but they should account for the higher local unemployment rate and the slower sales pace. The 52-day median days on market and the 21.3 percent share of listings with price cuts mean there may be room to negotiate on price or closing terms.
Investors seeking rental income may also find the market worth a closer look. The rent index of $1,643 is well above the state average, which suggests that rental demand or pricing in Houston is stronger than in Texas overall. However, with negative home value momentum and a large number of homes for sale at 35,920, investors should not assume short-term appreciation. Move-up buyers and sellers may face more challenges, because the current price-cut activity and longer selling timelines reduce the ability to sell quickly at top-of-market prices.
Outlook
The near-term data points to continued softness in Houston’s for-sale market. The 3-month home value momentum of -1.50 percent is weaker than the 12-month figure of -0.36 percent, indicating that price trends have recently moved in a more negative direction. With 35,920 homes for sale, a median days on market of 52 days, and 21.3 percent of listings showing price cuts, buyers are likely to retain negotiation leverage until inventory is more fully absorbed. The above-state unemployment rate of 5.1 percent may also continue to limit demand. On the rental side, the rent index of $1,643 remains well above the state average of $1,403, suggesting that rental demand could hold up better than for-sale price momentum. Population growth data is not available, so the longer-term demand picture cannot be fully assessed from the provided metrics.
AI-generated analysis based on current market data. Last updated October 5, 2026.
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Houston, TX market data
Houston, TX Housing Market Overview
Houston, TX's median home value is $305K, down 0.4% over the past year. Homes here sell in a median 52 days. Its PropertyIQ Score of 22 sits below the state average of 50, marking a market positioned to lag its state over the next three years.
PropertyIQ tracks the Houston, TX housing market through two complementary lenses: price momentum from Zillow home-value trends over 3 and 12 months, and demand pressure from how quickly homes sell and how often sellers cut prices, drawn from Realtor.com. The PropertyIQ Score distills these into one number that predicts how this TX market is set to perform against its state benchmark.
South Central housing markets are propelled by energy sector economics, corporate relocations, and rapid population growth. Texas metros in particular have seen explosive expansion, though affordability pressures are emerging in the fastest-growing areas. Within the South Central, Houston, TX's PropertyIQ Score of 22 runs below the South Central norm.
Texas continues to be one of America's top relocation destinations, with no state income tax and a business-friendly regulatory environment driving corporate headquarters relocations and population growth.
For the Houston, TX market, PropertyIQ calculates a single score each month from four inputs: twelve-month Zillow home-value momentum, three-month Zillow home-value momentum, median days on market from Realtor.com, and the Realtor.com price-reduced share. The score is computed nationally across all metros and calibrated so 50 equals the state average. Across the validation history, metro markets in the top score band have outperformed their state by roughly 1.7 percentage points more per year than bottom-band markets. Momentum here has been negative, with home values down 0.4% over the past year.
View Houston, TX's complete market profile including historical price trends, score history, and AI-generated analysis. Compare this market against any other US metro to find the best opportunities for your investment strategy.
Counties in the Houston, TX metro area
ZIP codes in the Houston, TX metro area
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Market data through August 2026. Sourced from Zillow, Realtor.com, Redfin, U.S. Census Bureau, FRED, BLS, and BEA. Per-statistic source and date shown above.
Frequently Asked Questions
Is Houston, TX a good place to buy real estate in 2026?
PropertyIQ doesn't label markets simply good or bad. Instead, the PropertyIQ Score measures a market's demand momentum against its own state, where 50 marks the state average. Houston, TX currently scores 22, a weak-momentum reading that leaves it positioned to lag its state over the next three years. For buyers, cooling demand usually brings more inventory, longer sale times, and real leverage to negotiate on price. Backing that up, the median home value here is $305K, down 0.4% over the past year. So whether Houston, TX is right for you comes down to your goals: a rising-momentum market can favor long-term appreciation but offers less room to negotiate, while a cooling one hands buyers more leverage. Treat the score as a timing signal to weigh alongside your budget, holding period, and plans for the property, not a verdict on the market's quality.
What is the PropertyIQ Score for Houston, TX?
Houston, TX's PropertyIQ Score is 22, indicating weak momentum on a 1-to-99 scale. The score distills four transparent inputs into a single number: Zillow home-value momentum over the past 12 months, Zillow home-value momentum over the past 3 months, the median days homes spend on the market from Realtor.com, and the share of listings with a price cut, also from Realtor.com. Rising values and faster sales push the score up, while slow sales and frequent price cuts pull it down. The scale is calibrated so 50 equals the state average, meaning a score above 50 predicts the market will outperform its state over the next three years and a score below 50 predicts underperformance. PropertyIQ computes the score across every US market nationally, then recenters it against each state, so 22 places Houston, TX below its state benchmark.
Are home prices in Houston, TX rising or falling?
Home prices in Houston, TX are falling. Over the past year, the median home value declined 0.4%, reaching $305K. Over the latest three months, values slipped 1.5%, a sign near-term demand is softening. PropertyIQ derives these figures from Zillow's home-value index, which tracks the typical value across the market rather than only the homes that happened to sell, giving a steadier read than a raw median sale price. Both the 12-month and 3-month momentum readings feed directly into the PropertyIQ Score, so this price trend is one of the core signals behind Houston, TX's current score. Keep in mind that appreciation can vary widely by neighborhood and price tier across the metro area, so treat these figures as the market-wide baseline rather than a guarantee for any single property.
How quickly do homes sell in Houston, TX?
In Houston, TX, homes sell in a median of 52 days from listing to pending sale, based on Realtor.com market data. Median days on market is one of the clearest real-time reads on local demand: when homes move quickly, buyers are competing and sellers hold the advantage, while lengthening timelines signal cooling interest and more room to negotiate. Alongside sale speed, about 21% of active listings here have taken at least one price cut — a complementary demand gauge, since a rising share of reductions often precedes slower sales and softer prices. Both median days on market and the price-cut share feed directly into the PropertyIQ Score, where faster sales and fewer cuts push the score higher. As a general guide, medians under about 30 days indicate a brisk, competitive market, while medians well beyond 60 days point to buyers regaining leverage. Actual time on market still varies by price band, property type, and season, so treat the median as a market-wide baseline.
How current is this metro area data?
This Houston, TX market data is refreshed on a monthly cycle, with the latest figures current through August 2026. PropertyIQ ingests fresh data every month from a range of authoritative sources: home values and rents from Zillow, days on market and price-cut activity from Realtor.com, additional housing signals from Redfin, demographic and housing-stock data from the U.S. Census Bureau, mortgage and macroeconomic series from FRED, and employment figures from the Bureau of Labor Statistics and the Bureau of Economic Analysis. The PropertyIQ Score itself is recomputed every month once the new source data lands, so the score and its four underlying inputs always reflect the most recent complete reporting period rather than a static snapshot. Because official housing data is typically released with a short lag, the current-through date usually trails the present by a few weeks, which is normal across the industry and not a sign the data is out of date.