Houston’s Housing Market in 2025: An Emerging Buyer's Market

Unlike Austin or Phoenix, Houston didn’t experience a sharp boom-bust cycle from 2020-2024. Home prices experienced a healthy and robust growth through 2022, but never spiraled out of control. And when mortgage rates climbed, Houston's housing market responded with with home prices stabilizing, not prices in free fall.

While 2024 was a year of balanced negotiating power between buyer and seller, 2025 is looking like a year where buyers have the edge and sellers will be doing whatever it takes to get their home off the market.

A Brief History: How Houston Became an Economic Powerhouse

Founded in 1836, Houston's early growth was powered by its role as a transportation hub and its proximity to the Gulf of Mexico. But it wasn't until the discovery of oil at Spindletop in 1901 that Houston began to transform into the economic heavyweight it is today.

Houston became—and remains—a global leader in energy, particularly oil and gas. Major firms like ConocoPhillips, Halliburton, Phillips 66, and Occidental Petroleum all call the Houston area home.

But the city didn't stop there.

Houston diversified into aerospace (with NASA's Johnson Space Center), medicine (with the Texas Medical Center, the largest in the world), and shipping (through the Port of Houston, one of the nation's busiest). Over time, it became a magnet for entrepreneurs and large corporations alike—companies like Waste Management, Sysco, and Crown Castle all got their start here.

In 2025, Houston is projected to create 71,200 new jobs, bringing total employment to over 3.5 million—a record high for the region. This growth is driven by strong performance in sectors like health care, construction, professional and technical services, government, and hospitality.

Culture, Cuisine, and Community

Beyond business, Houston has built a reputation as one of the most diverse and dynamic cities in America. Nearly 150 languages are spoken across its metro area, and no single ethnic group holds a majority—making it a cultural crossroads with global flair.

That diversity is reflected in:

• A vibrant culinary scene, from Viet-Cajun crawfish in Midtown to Mexican street food in the East End
• A burgeoning arts district anchored by the Museum District and Theater District
• Annual festivals like Houston Livestock Show and Rodeo, Bayou City Art Festival, and Juneteenth celebrations across the metro

Houston continues to attract talent from around the world—and it shows.

Houston’s Real Estate Market: Stable, Resilient, and Opening Up

Unlike Austin or Phoenix, Houston didn’t experience a sharp boom-bust cycle. Prices rose modestly between 2020–2022, but never spiraled out of control. And when mortgage rates climbed, Houston's housing market responded with stability, not panic.

Now in 2025, market conditions are shifting.

According to the Houston Association of REALTORS®, the median home price in the Houston metro was $339,990 in April 2025, reflecting minimal change from the previous year. (Source)

• Active listings are up over 30% year-over-year
• Days on Market has increased to 45 days, up from 30 in early 2024
• Price reductions and seller incentives are increasingly common

That means it’s no longer a seller’s market—and buyers have real negotiating power for the first time in years.

Why Houston Still Has Long-Term Strength

✅ Medical and Life Sciences Boom

The Texas Medical Center employs over 100,000 people and anchors Houston’s reputation as a global hub for healthcare and biotech. The ongoing TMC3 expansion promises even more innovation and job growth.

✅ Energy Capital of the World

Despite the transition to renewables, Houston remains the energy capital of the world. The city is leading advancements in hydrogen, carbon capture, and clean infrastructure—ensuring long-term economic strength.

✅ Population Growth & Affordability

Houston’s metro population has grown over 7% since 2020, now exceeding 7.5 million residents. With no state income tax and a lower cost of living than many major metros, Houston continues to attract new residents from California, New York, and beyond.

✅  A City That Invests in Itself

Houston is actively reinvesting in its future with forward-looking projects across infrastructure, healthcare, aerospace, and lifestyle.

From the transformation of Uptown through Central Park Post Oak to the expansion of Memorial Hermann Cypress Hospital and the cutting-edge development of HTX Surf, these projects reflect a city committed to livability and innovation. Houston is also modernizing its urban core with enhancements to the Main Street Promenade and continuing its leadership in space exploration through the expansion of Ellington Airport's Spaceport.

Together, these investments aren't just boosting the local economy—they're solidifying Houston's status as a resilient, future-ready metro. 

Houston vs. Austin: A Tale of Two Markets

Austin saw massive growth followed by a noticeable correction. Houston? It stayed grounded.

Because it never overheated, Houston’s real estate market has remained steady—and now it’s creating opportunity. With inventory climbing and pricing pressure easing, 2025 is shaping up to be a prime time for buyers who want value and stability.

How can buyer’s take advantage of this market?

Mortgage rates have stayed between 6% and 7% through early 2025. With greater inventory, softened pricing, and more room to negotiate, the monthly payment math is more manageable than you might expect. Many buyers are getting their seller to fund 2-1 temporary buydowns AND provide additional seller credits so buyers are able to achieve lower rates and minimal closing costs.

At LendFriend, we’re helping buyers lock in today’s opportunities—and build a refinance strategy for tomorrow (with our Rate Rebound Program), when rates are expected to gradually trend downward again.

The Bottom Line: Houston Is Built for Sustainable Growth

2025 isn’t about frenzied bidding wars—it’s about strategy, leverage, and long-term thinking. With a strong job base, rising inventory, and a resilient housing market, Houston is uniquely positioned for buyers who want stability and opportunity.

If you’re thinking about buying a home in Houston, this may be your best chance in years.

If you’ve been waiting for the right moment to enter the market—or come back to it—this could be it. If your compensation includes RSUs and you're looking to buy a home, we’d be glad to walk you through how we handle it and what to expect. It could make all the difference in qualifying for the home you really want, give us a call at 512.881.5099 or apply now, and one of our loan officers will be in touch as soon as we receive the application.