More Houston households could afford a median-priced home during the third quarter compared to the same time a year prior, according to the latest Housing Affordability Index from the Houston Association of REALTORS®.

Amid the median-home price decreasing 1.9% year over year to $341,600 and the average 30-year mortgage rate holding steady at 6.5%, Houston households needed a minimum of $2,510 to afford their monthly housing costs, including principal, taxes and insurance. That’s down from $2,550 during the third quarter of 2024.

Annually, households needed $100,400 to maintain those monthly payments, assuming they spend 30% of their income on housing costs. That’s down 1.6% year over year.

That means that 39% of Houston households could afford a median-priced home in Q3 — unchanged from Q2, but up from 37% during the third quarter of 2024.

While that’s slightly lower than statewide affordability — 42% of Texas households can afford median-priced homes — it’s better than national affordability, as 35% of households across the country can afford a median-priced home.

“We’re encouraged to see homebuying become a bit more attainable again,” HAR Chair Shae Cottar said in a press release. “Lower mortgage rates and home prices are helping open the door for more Houstonians. While affordability is still a challenge, especially for first-time homebuyers, Houston and Texas continue to be among the more affordable markets nationwide. Continued rate relief will be key in helping even more buyers achieve their goals of homeownership.”