Houstonians face surging home prices, rising rent costs, and escalating insurance rates.
Local real estate expert Tricia Turner joined Eyewitness News to explain how housing is impacting the affordability of this city.
Turner said interest rates are the biggest difference in housing over the last two decades of her experience.
Rising rates have impacted prospective home buyers across the country. However, Houston, as a Gulf Coast city, has been hit particularly hard by rising insurance rates.
First-time home buyers are feeling the brunt of the affordability crisis.
Turner said younger people are facing economic challenges like student loan debt and credit card debt.
There is also a cultural shift. Younger generations are prioritizing experiences and education while waiting longer to start a family.
Turner said she thinks mortgage rates may come down a bit next year, but it's not guaranteed.
If they do improve, that could give buyers a better chance of affordability.
Home buyers who are still struggling to find affordable housing options in today's market, even with recent reductions in mortgage rates, could still find it challenging if home prices are increasing.
For people looking to buy a house in 2025, Turner suggests knowing your budget.
Focus on your monthly housing payment, which is affected by the price of the home, your down payment, mortgage rate, loan term, home insurance, and property taxes.
You may not be able to afford your dream home right now, but consider your budget and buy something practical.
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