Houston remains one of the most affordable big cities, but that's at risk of changing

HOUSTON, Texas (KTRK) -- Is Houston as affordable as it once was? The answer seems to be yes and no.

A new housing study from the Kinder Institute of Urban Research at Rice University reveals that, while Houston is still among the most affordable large cities it is becoming more expensive.

The report reveals a lot of truths about the growing affordability gap between what people can afford and what it costs to keep roofs over their heads.

"So, the question of, is it all bad news, is affordability declining across the road, it's a nuanced question and I wish we had a yes or no answer but it kind of depends on a lot of different factors," said Caroline Cheong, the Associate Director of Housing and Neighborhoods at the institute.

She said a potential bright spot might be that more people are still buying homes.

"We are a renter dominated county as a whole, but we've actually seen an increase in the county. So, that balance that we've seen is starting to kind of shift and we're still investigating what's driving that shift. "

The report emphasizes burgeoning issues about we've reported before. In a March 2025 report, ABC13 focused on housing affordability as they it at the state Capitol.

"We're getting really, really close to a time when young Texas families will be unable to purchase a home and we know that home ownership is really foundational to the financial success of most American families," said Emily Brizzolara-Dove, a policy advisor with the non-partisan policy group Texas 2036.

ABC13 shared an October 2024 Texas Comptroller report that the median home price in Texas rose by about 40% between 2019 and 2023, with sharp increases in 2021 and 2022 post-pandemic.

The 2025 State of Housing in Harris County and Houston from the Kinder Institute calculates the median home price is $325,000 but the median income only supports a house costing $195,000. That's a $130,000 difference between what homes cost and people can afford.

State Senator Paul Bettencourt worked on the issue on multiple fronts during the legislative session that ended earlier this month-including property taxes, easing development restrictions for homes and apartments, and reducing mandatory lot sizes.

"It was really a very good session for housing affordability across the board," Sen Bettencourt said. "We're trying to get more housing stock, get more condos, get more apartments, whatever we can do, but at the same time if you've got ownership, we're going to dramatically lower your school tax bill. "

It's a problem that is not going away, and if it isn't addressed in a myriad of ways---as legislators and policy makers are trying to do--it stands to get worse before it gets better. Of growing concern are the impacts of climate on housing.

The report found 20% live in a floodplain or floodway, 25% lack conventional heating, and 5% lack complete plumbing.

"The intersection between housing and climate is one we need to be paying a lot closer attention to especially as the weather is showing no signs of being more gentle," Cheong said.