Housing affordability in Houston improves for the first time since 2020

HOUSTON, Texas -- The Houston housing market experienced a year-over-year improvement in the third quarter of 2024. It's the first year-over-year improvement since the second quarter of 2020, according to the Houston Association of Realtors' Q3 Housing & Rental Affordability report released Nov. 7.

The details

The report found that 38% of Houston-area households could afford to purchase a median-priced home in the third quarter of this year, compared to 35% this time last year.

The increase in affordability is largely due to the easing of interest rates and moderating home prices, according to the report.

Houston-area households needed to make a minimum income of $98,400 to afford a median-priced home in the third quarter of 2024, which is down 6.1% from this time last year, according to the report.

Also of note

While housing affordability improved, the report found that average lease prices for single-family homes increased 4.8% year over year in the Greater Houston area.

According to the report, 43% of Houston households could afford the minimum annual income of $88,000 to afford lease payments, which does not include utilities or security deposits.

Quote of note

"While it's encouraging to see housing affordability improve slightly, the dream of homeownership is still out of reach for the majority of households in the Houston area," HAR Chair Thomas Mouton said in the report.

This article comes from our ABC13 partners at Community Impact Newspapers.