Housing prices in Houston have experienced a notable decline, with condominiums showing the most significant drop. According to Homes.com, the median price for a condo in Houston last month was $182,250, representing a 21 percent decrease and nearly $50,000 less than the same period last year. In contrast, the overall housing price in Houston fell by 1.5 percent.
Itziar Aguirre, senior director of marketing analytics for CoStar, commented on the trend: “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 an increase in new supply as a contributing factor: “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.” Heightened insurance premiums and HOA fees are additional pressures impacting condo prices.
Houston remains the best-supplied housing market nationally; however, growth is slowing as inventory stopped rising for the first time in nine months this September. Over the past year, condo inventory increased modestly by 4 percent—just 15 more units for sale compared to September 2024—while detached home inventory grew by almost 1,000 homes or 9 percent year-over-year.
Last month, both Houston and Austin recorded the largest decreases in median home price among U.S. cities at 1.5 percent each. Meanwhile, Dallas/Fort Worth saw prices rise by 1 percent and San Antonio remained unchanged. Only four other cities—Atlanta, Tampa, Seattle and Las Vegas—experienced depreciation during this period.
By comparison, cities in the Rust Belt such as Pittsburgh, Detroit and Saint Louis reported home price increases of at least 7 percent.
Developers including Transwestern, Satya and Marriott International have recently focused on branded condo projects in Houston following Howard Hughes Holdings’ introduction of a Ritz-Carlton development to The Woodlands.
