The busiest Houston housing markets are the ones where inventory growth has provided ample choice for prospective homebuyers, the Houston Association of REALTORS® said in its quarterly Hottest Communities in the Houston Area report.
Leading the charge in the second quarter of the year was the Magnolia/1488 West area in the northwest of the Houston metro. There, transactions increased 61.6% year over year, making it the area with the greatest annual increase in home sales, despite an average sales price higher than the Houston-area average ($458,795 compared to $455,159). Previously, Magnolia ranked No. 10 in the first quarter.
That represents a slight shift from prior iterations of HAR’s report, where affordability was the major factor boosting the hottest markets.
“The communities seeing the most growth right now are the ones where buyers have choices,” said HAR Chair Theresa Hill. “New construction is expanding options and helping more buyers find homes that align with their needs and budget. That’s a trend we expect to continue as new communities take shape across the region.”
Just behind Magnolia at No. 2 was the Huffman area, which ranked as Houston’s hottest market one quarter ago. Transactions increased 58.2% year over year, with an average sales price of $271,045, demonstrating that affordable markets are still performing well when inventory meets demand. Six of the 10 hottest communities maintained average sales prices lower than the area average.
Also on the list were Conroe Southeast, where transactions increased 38% year over year with an average sales price of $566,019; Dayton (up 36.6% with an average of $326,896), Brookshire (up 33.3% with an average of $302,944), Willow Meadows (up 33.3% with an average of $427,237), Waller (up 31.9% with an average of $339,346), Briargrove Park/Walnutbend (up 30.2% with an average of $733,538), La Marque (up 29.5% with an average of $236,484) and Crystal Beach (up 28.9% with an average of $455,534).
Among luxury markets — those with average sales prices above $1 million — Tanglewood maintained its rank as the hottest market for the second quarter in a row. The community saw a 42.9% increase in home sales compared to the second quarter of 2025, with an average sales price of just over $2.3 million.
Other hot luxury markets included Braeswood Place (up 36.8% with an average of $1.4 million), Memorial West (up 4.1% with an average of $1.4 million), Briargrove (flat year over year with an average of $1.8 million) and the Rice/Museum District (up 7.2% with an average of $1.5 million).