Houston Housing Market

Expanding supply and cautious demand indicate a market positioned for stabilization.

The median sales price in February was $324,990, down 0.9% year over year, continuing a year‑long softening trend. Affordability pressures from elevated mortgage rates, higher property taxes and insurance costs, rising inventory, and slowing job growth are collectively weighing on demand and pushing some sellers to lower prices.

Active listings totaled 39,133 in February, up 18% year over year, reflecting nearly 6,000 additional homes on the market. More homeowners are listing properties after delaying sales amid higher mortgage rates compared to a few years ago. Homes are also taking longer to sell, with median days on market increasing to 81, up from fewer than 60 days in February 2022.

Houston recorded roughly 5,500 home sales in February, down 9% year over year, with approximately 540 fewer closings than a year earlier. Sales activity remained subdued relative to both 2023 levels and pre‑pandemic norms, reflecting ongoing affordability constraints despite moderating price growth, solid income gains, and slightly lower mortgage rates than a year ago. Even so, Houston posted the second‑highest February sales volume among the 40 largest U.S. markets, trailing only Dallas–Fort Worth.

The median home sale price in Houston fell by 0.9% in February compared to the same time last year, while national prices rose by 0.2%.

The median home price in Houston fell by 0.9% in the year ending February, marking the sixth-consecutive-month of price appreciation declines as compared to the same time a year ago. Home prices in February were $324,990, the lowest level in two years, highlighting a prolonged period of muted price appreciation.

Houston condo prices fell in February, slipping 10.5% in the past 12 months to $175,000. At the same time, townhome prices fell by 1.7% to $295,000. Prices of single-family homes fell by 0.8% over the same period to $327,500.

Softer job growth has coincided with higher supply, prompting some sellers to cut prices. The Houston metropolitan area created only 14,800 net jobs in 2025, which is roughly one-quarter of what it typically adds in a given year. Performance across major Texas metros remains weak, with year-over-year prices down 3.5% in Austin, 1.7% in San Antonio, 0.9% in Houston, and 0.2% in Dallas–Fort Worth.

Inventory reached 39,133 listings in February, their highest level since last August, signaling widespread supply growth.

Active listings totaled 39,133 in February, up 18% year over year, reflecting nearly 6,000 additional homes on the market. More homeowners are listing properties after delaying sales amid rising mortgage rates. Homes are also taking longer to sell, with median days on market increasing to 81, up from fewer than 60 days in February 2022.

Inventory growth occurred across all housing types. Single-family listings rose by 14%, condo listings increased by 22%, and townhome inventory grew the fastest at 27.5% year over year. Single-family homes account for the majority of listings (34,763), while faster growth in attached and condo inventory suggests improving availability of more affordable property types.

Inventory growth extended across Texas as many markets are rebalancing after a very tight period. Texas went through a major construction boom over the past several years, and many of those properties are now hitting the market. At the same time, demand has cooled, pushing inventories higher. Year-over-year, Houston saw the highest inventory growth (18%), followed by Austin (13.5%), Dallas-Fort Worth (10.7%), and San Antonio (4.4%). The rise in listings signals a shift towards a more balanced environment, where buyers have more options and homes are taking longer to sell.

Houston recorded close to 5,500 sales in February, a 9% year-over-year decline, with roughly 540 fewer closings than last February.

Houston home sales totaled 5,490 in February, down 9% from a year earlier and almost 30% lower than four years ago. While sales improved modestly from the sharp decline seen in 2023, it is far below the 3.4% annual decline seen this time last year, reflecting continued affordability challenges and cautious buyer behavior.

Home sales fell across all property types. Single-family sales were down 8.7%, condo sales were down 11.9%, and townhome sales posted the steepest year-over-year decline at 13.5%. Single-family homes continued to account for the majority of transactions (5,137 sales), but sharper pullbacks in the typically more affordable townhome and condo segments indicated weaker demand.

Home sales activity weakened across much of the country, indicating board-based market softness. Markets that saw a particularly sharp decline include Dallas (795), Houston (541), and Philadelphia (493).

For questions and commentary about this report:

Itziar Aguirre, Senior Director of Market Analytics at CoStar and Homes.com, based in Houston, is available for interviews to provide expert insights on this data and the broader residential real estate market.

Itziar Aguirre, Senior Director of Market Analytics

Homes.com

iaguirre@costar.com

Homes.com releases preliminary figures on housing trends on a monthly basis. Although these numbers may change slightly once all home sales are accounted for, they provide an early indication of home sale price appreciation, inventory changes, and sales volume during February 2026.

For most markets, geographical coverage consists of the Census-defined Core-Based Statistical Area (CBSA). Data for San Francisco, Los Angeles, Miami, and New York is at the Metropolitan Division level.

Definition of Sale Prices

Median home price is the midpoint sale price of homes closed during each month. This data includes homes that are detached, attached, and condominiums. Detached homes are single-family units. Attached homes are townhomes, rowhouses, and duplexes. The condominium classification includes co-ops.

Definition of Inventory

Inventory is the number of unique active listings that were for sale during each month. This data includes homes that are detached, attached, and condominiums. Detached homes are single-family units. Attached homes are townhomes, rowhouses, and duplexes. The condominium classification includes co-ops.

Definition of Home Sales

The total number of closed home sales on the MLS during the month. This data includes homes that are detached, attached, and condominiums. Detached homes are single-family units. Attached homes are townhomes, rowhouses, and duplexes. The condominium classification includes co-ops.

About the Homes.com Market Analytics Team

The Homes.com Market Analytics group is a team of experienced analysts embedded in nearly 30 markets across North America. These experts reside in and regularly visit the markets they cover, providing local expertise and a national perspective on all sectors of real estate: residential, office, industrial, retail, and multifamily.

About Homes.com Analytics Data

The Homes.com analytic data is compiled by the CoStar Analytics team, the largest and most experienced analytics team in the real estate industry. The team consists of over 50 economists, analysts, and data scientists, who collectively have more than 900 years of real estate experience and over 30 advanced degrees. Analysts on the team live in and around the markets they cover, enabling them to build deep local knowledge and unique insights.

The data set being used by the team is one of the most comprehensive and robust in the industry. It spans all 393 metropolitan markets, 542 micropolitan markets, and over 35,000 local neighborhoods in the U.S. The data set is sourced from almost 500 Multiple Listing Service (MLS) providers around the country, as well as public record data from each market, and is supplemented by proprietary data collected by CoStar's team of over 2,000 researchers. It includes a complete inventory of all homes in the U.S., including homes for sale, homes for rent, new construction homes, as well as sale comps and rent comps.