Houston’s $351K median price outperforms Texas metros in affordability

Houston’s housing market maintains a competitive edge in affordability while still showing a slight seller’s advantage, according to the latest HW Data. With a median listing price of $351,900, Houston presents a value opportunity for buyers priced out of Dallas and Austin markets.

Inventory and pricing vary significantly across Texas metros

The Houston metro area currently has 8,792 single-family homes on the market, representing substantial available inventory for buyers. San Antonio shows similar supply levels with 8,423 homes available, while Dallas (2,944) and Austin (3,410) demonstrate more constrained inventory conditions.

Median listing prices show considerable variation across Texas markets. Austin leads with the highest prices ($649,900), followed by Dallas ($514,999), while Houston ($351,900) and San Antonio ($314,900) offer more moderate price points. This pricing diversity creates different opportunities for buyers across the state’s major metropolitan areas.

Price reductions signal market adjustments

Price reductions are becoming increasingly common across all Texas metros, signaling a broader market adjustment. In Austin, 54% of listings have seen price cuts, followed by San Antonio at 51%. Houston shows a more moderate 33% of homes with reduced prices, while only 1% of Houston listings have increased in price.

Dallas shows the strongest seller’s position with an Altos Market Action Index of 34, followed by Austin (33), San Antonio (32), and Houston (30) — all technically remaining in seller’s market territory but showing varying degrees of market cooling.

Days on market extend across Texas

Homes in Houston now have a median of 77 days on market, identical to San Antonio. Austin shows a longer median marketing period at 84 days, while Dallas has the shortest at 70 days. These figures indicate a significant slowing from the rapid pace seen in previous years.

This extended marketing period gives Houston buyers more negotiating power than they’ve had in recent years, though the market has not yet fully shifted to buyer-favorable conditions.

Price per square foot highlights value proposition

Houston offers strong value in terms of price per square foot at $181, compared to San Antonio ($168), Dallas ($257), and Austin ($322). While San Antonio edges out Houston in absolute affordability, Houston provides more space for the dollar than higher-priced metros like Dallas and Austin.

This price-per-square-foot advantage positions Houston as an attractive option for buyers seeking more space without the premium prices found in some other Texas markets.

Strategic implications for housing professionals

For mortgage lenders, Houston’s combination of relatively stable pricing and higher inventory levels creates more favorable conditions for buyers compared to other Texas metros. The significant percentage of price decreases across all Texas metros suggests sellers are adapting to changing market conditions.

Real estate professionals in Houston face a market where proper pricing strategy is increasingly critical. With one-third of listings seeing price reductions and a median of 77 days on market, initial pricing accuracy has become essential for sellers hoping to avoid extended marketing periods.

Market outlook

Despite signs of cooling, all four major Texas metros technically remain in seller’s market territory with “slight seller’s advantage.” Houston’s position as the most balanced of the four provides unique opportunities for both buyers seeking affordability and sellers who price strategically.

As Texas housing markets continue evolving, Houston’s combination of inventory, affordability and value positions it as an attractive option for buyers seeking relief from higher-priced markets.

This analysis was powered by HW Data. To explore what’s happening in your local housing market, subscribe here.