Houston Housing Market

More homes are hitting the market, giving buyers more choices and greater negotiating power. At the same time, elevated mortgage rates and affordability challenges are slowing competition and keeping price growth modest.

Houston's housing market has settled into a more stable pattern after several years of volatility. A total of 7,923 homes sold in July, matching year-ago levels and marking the strongest July sales total in four years. While sales remain below the pandemic-era peak, activity has held up better than many expected given the higher cost of homeownership.

Affordability remains a challenge as higher mortgage rates and ownership costs weigh on buyers. Still, Houston continues to attract new residents at one of the fastest rates among major U.S. metros, while job growth across healthcare, technology, logistics, and energy continues to support housing demand.

The biggest shift in Houston's housing market is the growing supply of homes for sale. Active inventory reached a record 41,320 listings in July, up 7.8% from a year earlier, while new listings climbed 12.8% to 15,139 homes.

As inventory has expanded, buyers have gained more flexibility. Homes spent a median of 59 days on the market, compared with roughly 42 days in 2022 when inventory was scarce and bidding wars were common. Houston also recorded 5.8 months of supply, the fourth-highest level among major U.S. markets, behind Miami, San Antonio, and New York.

With more homes to choose from, buyers have more time to compare properties, negotiate terms, and wait for price reductions when sellers are overly ambitious.

View the latest homes for sale in Houston.

The increase in inventory is keeping home price growth in check. Houston's median home price rose just 0.8% over the past year, reflecting a market where sellers have less pricing power than they did during the pandemic housing boom.

Prices have remained relatively stable despite record inventory, supported by population growth and continued demand for higher-end homes. Houston's median home price of roughly $345,000 remains about 15% below the national median.

Stable sales, rising inventory, longer selling times, and modest price appreciation points to a market that is becoming increasingly balanced, offering opportunities for both buyers and sellers.

The median home sale price in Houston increased by 0.8% compared to the same time last year, while the national median price rose by 2.6%.

Houston median home prices rose by $2,713 year over year on a nominal basis in July to $344,713. Meanwhile, the national median home price increased by $10,000 to $400,000.

Texas housing markets delivered mixed results over the past year. Dallas-Fort Worth recorded a 1.7% price decline, San Antonio was unchanged, while Houston and Austin saw slight appreciation of 0.8% and 0.6%, respectively.

Houston was the 33rd highest-priced housing market among the top 40 largest markets last month. The Houston median home price of $344,713 was 13.8% below the national median home price. Houston's median home price in July compares to the market's peak of $354,740 recorded in June of 2022.

The median price of Houston single-family homes rose by $3,010 over the past year to $350,000, while the median townhome price declined by 2.2%, and the median condo price rose by 1.1%.

The number of homes for sale in Houston increased by 7.8% in July compared to the same time last year, while national homes for sale rose by 4.4%.

Houston homes for sale rose by 3,003 year over year in July to 41,320 homes for sale. Houston ranked 18th, on a percentage basis, for the annual change in the number of homes for sale among the top 40 U.S. markets in July.

Houston homes for sale were above their pre-pandemic levels in the month of July. Houston homes for sale were 1.9% above the July 2019 total of 40,549.

Housing inventory trends have diverged across Texas as markets move beyond the tight conditions that defined the post-pandemic period. Houston was the only major metro to record year-over-year inventory growth, with active listings rising 7.8%. In contrast, inventory declined 0.9% in San Antonio and 4.7% in both Dallas–Fort Worth and 5.7% in Austin.

Houston single-family homes for sale grew by 7.4% to 36,601 in July. In comparison, townhomes for sale rose by 12.1% to 2,135, and condos for sale increased by 10.1% to 2,584.

The number of home sales in Houston increased by 0.3% in July compared to the same time last year, while national home sales rose by 2.9%.

Houston home sales increased by 26 year over year on a nominal basis in July to 7,923. For context, 7,897 sales closed in Houston in July 2025.

Houston ranked 26th for the annual change in home sales out of the top 40 U.S. markets in July on a percentage basis. This year's July increase of 0.3% compares to the 3.3% year over year increase in July 2025.

Houston single-family sales increased by 0.9% in July to 7,423. In comparison, townhome sales fell by 11.2% to 270, and condo sales fell by 3.0% to 230.

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 transactions are accounted for, they provide an early indication of home price appreciation, inventory changes, and sales volume in Houston during July 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.

Definition of Days on Market

The median number of days from initial listing to closing of properties whose closing occurred during the month. This data includes detached, attached, and condominium homes. Detached homes are single-family units. Attached homes are townhomes, rowhouses, and duplexes. The condominium classification includes co-ops.

Definition of Months of Supply (MOS)

Months of Supply (MOS) is equal to active listings divided by homes sold in a given 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 Sale to List Price Ratio

The sale-to-list price ratio is the ratio of the sale (closing) price to the original list price, whose closing occurred 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.