Forty percent of Houston households could afford a median-priced home during the second quarter, up from 36% during the same time period in 2025 but down from 42% one quarter ago. That’s according to the latest Housing and Rental Affordability Report from the Houston Association of REALTORS®.
The annual improvement is due to “lower mortgage rates and moderating home prices,” HAR said.
“Houston homebuyers got a little more breathing room during the second quarter,” said HAR Chair Theresa Hill. “Lower mortgage rates helped bring down monthly housing costs, and while affordability is still a challenge for many people, even a small drop in rates can go a long way toward making homeownership more attainable.”
Single-family affordability
Given the median home price of $345,200 — down 1.2% year over year — and the average 30-year mortgage rate of 6.41% — down from 6.79% a year prior — the typical monthly mortgage payment was $2,550, including principal, taxes and insurance. A year ago, the monthly mortgage cost was about $100 more expensive at $2,650.
That means Houston households needed an annual income of $102,000 to afford a median-priced home, down 3.8% year over year.
Housing affordability also improved annually both statewide and nationally: About 41% of Texas households could afford a median-priced home in the second quarter, up from 36% a year ago, while the United States affordability index increased from 33% to 37%.
Rental affordability
Houston’s rental affordability dipped slightly in the second quarter, with 45% of households able to afford a median-priced single-family rental, down from 46% a year prior.
The average rent payment increased 2.4% year over year to $2,150, which meant Houston households would need an annual income of $86,000 to afford monthly housing costs.
However, while lease prices increased across the Houston metro, many counties saw annual declines in single-family lease prices: Fort Bend County was down 1.7%, Harris County was down 2.3%, Montgomery County was down 2.4% and Galveston County was down 3.4%.