Featuring the perspectives of local brokerage executives:

Brooks Ballard
President, Engel & Völkers Houston

Carol Drake
Managing Broker, United Real Estate Houston

Danielle Durocher
Team Leader, Keller Williams Realty Gold

Jenna Faetanini
Senior Managing Broker, eXp Realty

Ayoub Rabah
Regional President, Midwest, Coldwell Banker Realty

What do you expect for the overall housing market for 2025? Up, down or stable? Why?

Jenna Faetanini: I anticipate the housing market in 2025 to remain relatively stable with slight upward trends in certain regions. While affordability challenges and inventory constraints will continue to influence the market, steady demand for housing — especially in desirable areas — should keep activity consistent. Buyers and sellers are expected to adapt to prevailing mortgage rates, leading to balanced market conditions. Economic stability and job growth will also play a significant role in supporting the housing sector, fostering a cautiously optimistic outlook.

Brooks Ballard: I anticipate a stable to slightly upward trend for the Houston housing market in 2025. Factors such as Houston’s steady population growth, a robust job market and ongoing infrastructure developments will continue to drive demand. While interest rate fluctuations could create some uncertainty, Houston’s diverse economy positions us to weather such challenges better than most markets.

Danielle Durocher: When I look ahead at the 2025 housing market, I see a year that calls for careful navigation and a readiness to adapt to shifting economic conditions. I can see the year becoming a combination of months and/or quarters of ups, downs and stability. We have had several years of market volatility due to skyrocketing prices and rising interest rates, and we’re likely to experience periods of stabilization. Home prices should level off, though we’re not expecting significant drops due to ongoing demand and limited inventory. Mortgage rates, while still higher than the historic lows we’ve seen in the past, might ease slightly, providing some much-needed relief for buyers.

That said, affordability challenges will continue, influenced by rising inflation and economic uncertainty. Many first-time homebuyers may find themselves priced out of traditional markets, pushing them to explore alternative options. At the same time, environmental awareness and sustainability will play a growing role in shaping new developments, with eco-friendly and energy-efficient homes becoming more desirable. Technology will also remain a key player, with smart home features continuing to set properties apart.

Carol Drake: Predicting the Texas housing market for 2025 depends on several factors, including economic conditions, population growth, interest rates and housing inventory. Overall, a moderate price increase is a plausible expectation due to persistent demand pressures, but local conditions will vary across cities.

Ayoub Rabah: Both Fannie Mae and the National Association of Realtors are predicting a more positive year for 2025. At Coldwell Banker, we are optimistic as well. Price gains will not rise as dramatically, and this will get more buyers off the sidelines. We don’t just need more inventory, we need more desirable, well-priced inventory that is turnkey or very close to it. This will motivate buyers to act.

For Houston specifically, all indications are home prices will increase by slightly more than the national average. Houston continues to be a hot market, with a strong economy and an excellent job market, especially in sectors like energy, healthcare and technology. This is attracting high income professionals who are willing to invest in real estate.

What growth, if any, do you expect for your company next year?

Ballard: Brooks Ballard | Engel & Völkers Houston is poised for remarkable growth in 2025. Our focus on recruiting top-tier advisors and expanding our presence in key markets will strengthen our foothold. Additionally, leveraging innovative technology and delivering unparalleled client service will enable us to achieve new milestones.

Rabah: Both nationwide and in Houston, we see our share of the luxury market increasing. As a company, Coldwell Banker sells more than $200 million each day in luxury real estate. Our firm has a host of tools for our agents to utilize for marketing, especially at the luxury level. The true asset of our program is our incredible global network and name recognition. In greater Houston, the number of $1 million and up home sales grew by nearly 10% in 2024. We are poised to increase in 2025 the number of luxury home sales in greater Houston.

Drake: Predicting growth for United Real Estate in 2025 depends on industry trends, market conditions and the company’s strategic initiatives. United Real Estate has been expanding rapidly in recent years by leveraging a technology-driven platform and focusing on agent recruitment. United Real Estate is well-positioned to grow driven by agent network expansion, increased transaction volume in high-growth regions, continued focus on technology and acquisitions.

Faetanini: I believe eXp Realty LLC is poised for continued expansion in 2025. By leveraging our innovative cloud-based platform and agent-centric model, we’re well-positioned to enhance our market presence and attract top-tier talent. Our strategic focus on technology integration and providing unparalleled support to our agents will drive increased transaction volumes and revenue growth, ensuring another successful year ahead.

Durocher: In 2025, I’m proud to say that Keller Williams Houston Central is positioned for continued growth and success. We’re currently ranked among the Top 100 fastest-growing offices nationwide for Keller Williams Realty International, out of over 850 offices—a testament to the incredible dedication of our agents and leadership team.

Our success is fueled by a clear, unwavering focus: empowering our agents with the tools, models and systems they need to thrive sandwiched in a culture of caring and sharing. By equipping them with cutting-edge resources and strategies relevant to the market of today, we ensure they’re positioned to deliver unparalleled service to their clients. It’s an exciting time for our office, and I can’t wait to see how we’ll continue to grow together.

What will be the biggest challenges for agents in 2025 and how can they overcome those challenges?

Durocher: Real estate in 2025 will demand agility, expertise and a forward-thinking mindset to thrive amid mounting challenges. Economic trends, technological innovations and shifting buyer priorities are reshaping the industry.

Affordability will be a key concern, with high home prices and elevated mortgage rates. Agents must master financing options like down payment assistance programs and explore creative solutions. Deeper collaborations with lenders and a grasp of alternative financing are crucial. Market volatility fueled by economic uncertainty will require agents to stay informed and flexible. Guiding clients with adaptable plans, including investment opportunities and growth-focused areas, can help navigate fluctuating demand. Technology, both a challenge and a tool, will reshape operations with AI-driven property matches, virtual experiences, and automated systems. Success lies in embracing these tools and building proficiency in digital marketing and engagement. Tech platforms will be stiff competition. Agents must offer what technology cannot — personalized service, local expertise and trust.

In my experience, I see that many consumers base their decisions on what they hear in the national news and social media about the housing market, often without realizing how different the local market can be. That’s why becoming hyper-knowledgeable about our local market will be absolutely essential. The agent who truly understands the ins and outs of an area, knows how to break down that information in a way that’s clear and actionable for clients, and can guide them confidently through their decision is the agent who becomes indispensable. Our goal is always to consult and build our agents to be that trusted indispensable local expert.

Faetanini: I believe as an industry we will face challenges such as adapting to evolving market conditions, managing client expectations amid fluctuating mortgage rates and keeping up with rapid technological advancements. Additionally, navigating the implications of the NAR settlement and implementing changes to forms and transaction processes will introduce new complexities. These adjustments will require us as agents to rethink how we approach and negotiate transactions.

To overcome these challenges, I believe agents should prioritize continuous education to stay informed about regulatory updates, market trends, and industry innovations. Embracing new technologies will help agents streamline workflows, enhance their marketing, and improve their communication with clients. Building trust-based relationships through clear and transparent communication will also be critical for managing both agent relationships and client expectations during the transaction process. By staying proactive and flexible, I am confident we can navigate these challenges effectively while positioning ourselves as trusted experts in an ever-evolving market.

Rabah: I encourage a back-to-basics strategy for agents. That includes areas such as pricing, knowledge of local neighborhoods, staging, negotiation skills, marketing, social media, open houses, etc. Agents should be sure to know all the tools their brokerage provides and make regular use of them. Technology is ever-changing and developing. Those agents who stay on top of this and incorporate it into their business models will be the agents who fare best.

Ballard: The greatest challenge will likely be adapting to the rapid advancements in technology and shifting client expectations. Agents who embrace ongoing education, integrate data-driven tools and foster genuine relationships will thrive. At Brooks Ballard | Engel & Völkers Houston, we are committed to equipping our advisors with the resources and training to stay ahead of the curve.

Which Houston suburbs have the brightest housing outlook in 2025?

Rabah: Census data shows populations are growing faster in Houston’s suburbs than the city itself. More specifically, The Woodlands, Katy, Conroe, Magnolia, Pearland, League City, Sugar Land and Fulshear are continuing to boom and expand. The geographic area of greater Houston continues to expand to accommodate the strong demand for this region, and Coldwell Banker serves all these markets.

Drake: Several neighborhoods and suburbs in the Houston area stand out due to favorable economic and development trends. I would expect The Woodlands to retain its appeal due to its strong local economy and community-oriented lifestyle. With its strong schools and neighborhoods, Sugar Land offers great opportunities for families, supported by affordable prices and steady development. Growing infrastructure and proximity to Houston’s core make Pearland a promising area, particularly for first-time buyers or those seeking value.

Ballard: Neighborhoods such as The Heights, River Oaks, West University and Memorial will continue to shine due to their desirability and strong demand. Suburbs like Cypress, The Woodlands, Sugar Land and Katy, which offer exceptional amenities, are attracting families seeking a high quality of life.

Faetanini: The Heights remains a sought-after area with its historic charm, unique architecture and close proximity to downtown, offering a blend of tradition and modern amenities that appeal to buyers. River Oaks, one of Houston’s most prestigious neighborhoods, continues to see high demand due to its luxury homes, established reputation and prime location. Suburbs like Sugar Land and The Woodlands are also poised for significant growth. Sugar Land, located southwest of Houston, offers excellent schools, a family-friendly atmosphere and vibrant community amenities, making it a top choice for families. Similarly, The Woodlands, with its master-planned design, abundant green spaces, and thriving business district, provides an exceptional quality of life that attracts a wide range of buyers.

These neighborhoods and suburbs are well-positioned to benefit from Houston’s ongoing economic development and population growth. Their combination of desirable amenities, strong community infrastructure, and diverse housing options ensures they will remain attractive to buyers and investors alike. In my view, these areas represent the brightest spots in the Houston housing market for 2025.

Check out this year’s other predictions below!