Forty-two percent of Houston-area households could afford a median-priced home during the third quarter, according to the Houston Association of REALTORS’® new Housing and Rental Affordability Report. That was up from 40% a quarter ago and 39% during the third quarter of 2025.

Single-family affordability

Despite a higher average 30-year fixed mortgage rate, median home prices declined 0.4% year over year to $340,300. That meant the typical monthly mortgage payment — including principal, taxes and insurance — decreased to $2,520, down from $2,510 a year ago and $2,550 in Q2.

Given that cost, Houston households needed an annual income of at least $100,800 to afford a median-priced home. Forty-two percent fell into that income range.

“Affordability is moving in the right direction, and that’s encouraging, but we also know many consumers are still concerned about the cost of buying a home, particularly with mortgage rates remaining elevated,” said HAR Chair Theresa Hill. “For buyers who may have been sitting on the sidelines, it’s worth taking another look at what’s possible. A Realtor can help buyers understand their options and determine what’s realistic for their budget.”

Statewide, 45% of households could afford a median-priced home ($335,000) in the third quarter, up from 42% a year prior; nationally, 38% could afford the median of $432,900, which was up from $426,800 a year ago.

Rental affordability

Among Houston’s single-family rental properties, 44% of households could afford the median lease price in the third quarter. That was down from 45% in both the third quarter of 2025 and the second quarter of 2026.

The median monthly lease cost was $2,195, down from $2,200 a year prior. That meant households needed an annual income of $87,800 to afford a single-family rental, down from $88,000 last year.