Here’s your guide to Houston home buying and renting.
The Houston housing market in 2023 is marked by a mix of rising rental costs and a somewhat competitive market for home sales, with significant variances across different neighborhoods.
To get to know the situation better, let’s dive into the details of the Houston housing market and the rental market that underscores it.
The Houston rental market
In terms of rentals, there’s been a notable increase in average prices. Apartments in Houston range between $1,208 for a one-bedroom and $1,520 for a two-bedroom. Compared to 2021, these rates reflect a substantial increase, with a two-bedroom apartment averaging $1,637, indicating a 23.08% rise. This increase is even more pronounced when considering the rent for a studio apartment, which is around $1,242, and a one-bedroom, which is $1,208, both showing significant increases from the previous year.
Home sales in Houston
On the home sales front, the overall market in Houston is moderately competitive. Homes in Houston generally receive around three offers and sell in about 29 days. The median sale price in Houston was $325,000 last month, showing a modest increase of 1.3% since the previous year.
The median sale price per square foot also saw a rise to $176, up 3.5% from last year. This overall trend of moderate competitiveness and slight price increases is a consistent theme across the city.
Home prices by neighborhood
Diving deeper into specific neighborhoods, the differences become more pronounced. Downtown Houston, for instance, saw a significant jump in home prices, with a 37.1% increase compared to last year, bringing the median price to $405,000. Midtown Houston experienced a 40.7% bump, with an average house price of $390,000.
The Inner Loop West area also increased significantly, with the median sale price rising 12.0% to $560,000. In contrast, some areas like Cypress and Kingwood witnessed a decline in median sale prices. Cypress saw a 1.4% decrease, while Kingwood experienced a similar decline, with its median sale price dropping by 1.4%.
Other areas within Houston show further diversity in trends. The Greater Third Ward’s median sale price increased by 1.1%, while Greater Heights reported a 6.7% increase. Fourth Ward’s average house price saw a significant hike of 23.7%. However, some regions like University Place and Memorial experienced slight decreases in average house prices, with University Place seeing a 0.26% drop and Memorial a 4.2% decrease. Conversely, areas like Northeast Houston witnessed a 6.3% increase in their average house.
Settle down in a Houston home
The Houston housing market in 2023 is characterized by a general trend of rising rental prices and a housing market that is moderately competitive. The trends in home sale prices and competitiveness vary widely across different neighborhoods, with some areas experiencing significant increases in median sale prices, while others see modest decreases or stabilization. This variability reflects the diverse and dynamic nature of finding a home in a hot city like Houston.
