Housing prices in Houston have declined, with condos experiencing the most significant drop. According to data from Homes.com, the median price for a condo in Houston last month was $182,250. This represents a 21 percent decrease compared to the previous year and is nearly $50,000 less than what buyers paid a year ago. In contrast, the overall housing price in Houston fell by only 1.5 percent.
Itziar Aguirre, senior director of marketing analytics for CoStar, said: “People buying condos are first-time buyers on a more limited budget, and those people are most affected right now by inflation and high mortgage rates.” Aguirre also noted that an increase in new supply has contributed to falling prices: “And there’s also a lot of new supply. Coming out of the pandemic, we saw a surge of demand here for housing, and developers went bananas.”
Aguirre added that rising insurance premiums and homeowners association (HOA) fees are also affecting condo affordability.
Houston remains the best-supplied housing market nationally; however, growth is slowing as inventory stopped increasing in September after nine months of gains. Condo inventory increased by just 15 units compared to September 2024—a 4 percent rise—while detached home inventory grew by almost 1,000 homes or 9 percent year-over-year.
Last month, both Houston and Austin saw the largest decreases in median home prices among U.S. cities at 1.5 percent each. Other major Texas metro areas did not offset this trend: Dallas/Fort Worth saw a 1 percent increase while San Antonio’s prices remained flat.
Elsewhere in the country, only Atlanta, Tampa, Seattle and Las Vegas experienced price declines alongside Houston and Austin. In contrast, Pittsburgh, Detroit and Saint Louis led home sale price increases with gains exceeding 7 percent.
Developers such as Transwestern, Satya and Marriott International have launched branded condo projects in Houston recently. Howard Hughes Holdings previously introduced a Ritz-Carlton development to The Woodlands area.
