Key Takeaways

Key Takeaways Houston remains affordable: At $385,000 median home price, Houston beats Austin ($520,000) and Dallas ($465,000), though affordability gaps exist for median-income households earning around $65,000 Population boom continues: 89,000 new residents in 2025 with 42,000+ new housing permits, but most construction happening 30-40 miles from downtown creates opportunities in established neighborhoods Market shows resilience: 15% increase in purchase mortgage applications despite 6.8% interest rates indicates strong confidence in Houston's long-term growth prospects Strategic opportunities exist: Starter home shortage, strong rental demand, and infrastructure investments create opportunities for informed buyers and investors who understand local market dynamics

Houston Real Estate 2026: What Uncle Charles Sees in the Nation's Fourth Largest City

Look, I've been watching Houston's real estate market for decades, and let me tell you — this city never stops surprising me. While other major metros are dealing with serious housing headaches, Houston keeps chugging along like that reliable pickup truck that just won't quit.

I had a homeowner call me last week from Katy who said, "Uncle Charles, I keep hearing about this housing crisis, but my neighbor just sold his house in three days." That's Houston for you — it's got its own rhythm, and it doesn't always match what you're seeing on the national news.

The Numbers Don't Lie: Houston's Housing Reality Check

Here's the deal with Houston right now. The median home price hit $385,000 in early 2026, which sounds scary until you compare it to Austin at $520,000 or Dallas at $465,000. Suddenly, Houston starts looking pretty reasonable for a city of 2.3 million people.

What's really interesting is the mortgage activity. We're seeing about 15% more purchase applications compared to this time last year, even with rates hovering around 6.8%. That tells me people are still betting on Houston's long-term growth, and honestly, they're probably right.

The Greater Houston Partnership reported that the metro area added 89,000 new residents in 2025 — that's like adding a whole new Galveston every year. These aren't just oil and gas workers anymore either. We're talking tech companies, healthcare expansion, and logistics operations setting up shop because land is still affordable and the business climate is friendly.

New Construction: Building for Tomorrow's Houston

I drive around these suburbs — Cypress, Spring, Pearland, Sugar Land — and it's like watching a city grow in fast-forward. Builders pulled permits for 42,000 new units in 2025, and they're on track to match that this year.

But here's what I'm seeing that the fancy reports don't always capture: a lot of this new construction is happening 30-40 miles out from downtown. That's creating opportunities closer in for investors and homebuyers who know how to look past cosmetic issues.

At HOMESELL USA, we're buying older properties in neighborhoods like Bellaire, West University, and even parts of the Heights where families are moving further out for newer construction. These aren't distressed properties necessarily — they're just houses that need updating, and the owners would rather take cash and move to a brand new build in Tomball.

The Affordability Picture: It's Complicated

Let's talk straight about affordability because this is where it gets interesting. Yes, Houston is more affordable than most major cities. But that doesn't mean it's easy for everyone.

The Houston Association of Realtors says a household needs to earn about $89,000 annually to comfortably afford that median-priced home. In a city where the median household income is around $65,000, you can see the math problem.

But Houston has something a lot of cities don't: options. You've got inner-loop neighborhoods, suburban master-planned communities, small towns that got swallowed up by growth, and everything in between. I've seen teachers buy houses in Humble, firefighters in Pasadena, and young professionals sharing condos in Montrose.

The key is understanding what you're buying into. That $280,000 house in northeast Houston might seem like a deal, but you better understand flood zones, school districts, and commute times before you sign anything.

What the Growth Really Means

Here's something I've seen a hundred times: people move to Houston for opportunity, but they don't always understand the market they're jumping into. This isn't a city where you buy the first house you see and hope for the best.

The population growth is real — we're talking about 1,000+ people moving here every month. But it's not evenly distributed. The Energy Corridor is booming. The Medical Center keeps expanding. Downtown is actually becoming a place where people live, not just work.

Each of these growth pockets creates ripple effects. That new Amazon distribution center in Humble? It's going to change property values in a five-mile radius. The new medical facilities being built in Pearland? Same thing.

The Opportunities I'm Seeing

Whether you're buying, selling, or just trying to understand what your Houston property is worth, here's what I'm tracking:

Starter Home Shortage: Builders are focused on higher-margin homes, which means older starter homes in good neighborhoods are getting snapped up. If you own a 1,200-square-foot house in a solid area, you've got options.

Rental Market Strength: With population growth outpacing construction in some areas, rental demand is strong. I'm seeing investors from Dallas and Austin buying Houston properties because the numbers actually work.

Infrastructure Investment: The city is finally addressing flood control, and that's going to affect property values in previously risky areas. If you know how to read flood maps and understand the timeline on these projects, there are opportunities.

The Reality Check You Need

Look, I'm bullish on Houston long-term, but I'm not going to blow sunshine at you. This market has challenges.

Property taxes are high and getting higher. Some neighborhoods are still dealing with Harvey damage from 2017. The commutes can be brutal, and not every area that looks good on paper actually is.

At HOMESELL USA, I work with people every week who bought in Houston without doing their homework. They got excited about the price compared to where they moved from, but didn't factor in the property taxes, the flooding risk, or the fact that their dream neighborhood turns into a parking lot twice a day during rush hour.

That doesn't mean don't buy in Houston — it means buy smart. Understand what you're getting into. Work with people who know the market, not just the sales techniques.

What This Means for You Right Now

If you're thinking about Houston real estate in 2026, here's my straight talk:

For Buyers: You've got more options than most major cities, but you need to be strategic. Don't get caught up in bidding wars for overpriced properties when there are still deals to be found if you know where to look.

For Sellers: The market is good, but it's not foolproof. Price it right, present it well, or consider alternatives like selling directly to investors if you need speed and certainty.

For Investors: Houston rewards people who understand the fundamentals — location, cash flow, and long-term growth patterns. This isn't a get-rich-quick market, but it's a get-rich-steady market if you're patient.

I've been doing this long enough to know that every market has its rhythm. Houston's rhythm is steady growth, reasonable prices compared to peer cities, and opportunity for people who do their homework. Whether you're working with HOMESELL USA or any other real estate professional, make sure they understand that rhythm before you make any big decisions.

If you're dealing with any Houston property situation — whether it's a traditional sale, a challenging property, or you just need straight answers about your options — give Uncle Charles a call. No pressure, no judgment, just honest advice from someone who's seen it all in this market.

Frequently Asked Questions

Frequently Asked Questions

Is Houston still affordable compared to other major Texas cities?

Yes, Houston remains more affordable than Austin and Dallas. With a median home price around $385,000 compared to Austin's $520,000, Houston offers better value for major metro living, though affordability challenges exist for median-income households.

What areas of Houston are seeing the most population growth in 2026?

The fastest growth is happening in suburbs like Cypress, Spring, Pearland, Katy, and Sugar Land. These areas are attracting families with new construction and master-planned communities, while creating opportunities in closer-in neighborhoods.

How is new construction affecting Houston's housing market?

Builders are pulling permits for over 40,000 units annually, but most new construction is happening 30-40 miles from downtown. This creates a shortage of starter homes in established neighborhoods and opportunities for renovation projects closer to the city center.

What income do you need to buy a home in Houston in 2026?

Financial experts recommend a household income of around $89,000 to comfortably afford Houston's median-priced home. However, Houston's diverse neighborhoods offer options at different price points for various income levels.

Are Houston property taxes really that high?

Yes, Texas has higher property taxes than many states since there's no state income tax. Houston area property taxes typically range from 2.5% to 3.5% of assessed value annually, which buyers need to factor into their total housing costs alongside mortgage payments.