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Energy capital & medical hub

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Median Price

$325,000

-0.3% YoY

Days on Market

74

Average listing duration

Inventory

4.8 mo

balanced market

YoY Change

+-0.3%

Price appreciation

Last updated 2026-03-19

What to know about buying in Houston

Houston is the fourth-largest city in the United States and the economic capital of the global energy industry, but reducing it to oil and gas misses the story that matters for homebuyers. The Texas Medical Center is the world's largest medical complex, employing over 106,000 people across 60+ institutions including MD Anderson Cancer Center, Houston Methodist, Baylor College of Medicine, and Texas Children's Hospital. NASA's Johnson Space Center runs human spaceflight operations. The Port of Houston is the busiest in the US by tonnage. And the energy transition itself, hydrogen, carbon capture, LNG, is headquartered here because the engineering talent, pipeline infrastructure, and capital markets already exist. The result is a metro of 7+ million people with an economy diversified enough to absorb oil-price swings that would devastate a single-industry city.

The housing market reflects Houston's fundamentals: affordable, abundant, and influenced by forces unique to the Gulf Coast. The $325,000 median is remarkably low for a metro of this scale, below Dallas ($390K), well below Austin ($450K), and a fraction of coastal peers like San Francisco or New York. Prices are essentially flat year-over-year (-0.3%), inventory has climbed to 4.8 months, and homes average 74 days on market. New construction is abundant thanks to Texas's lack of zoning restrictions (Houston famously has no zoning code) and flat, buildable terrain in every direction. This supply pipeline keeps prices moderate but also means that resale homes compete against new builds in a way that is unusual for a major metro.

The two forces that dominate Houston homebuying conversations are flooding and property taxes, and neither gets enough attention from relocators who are focused on sticker prices. Hurricane Harvey in 2017 flooded 300,000+ structures and exposed how inadequate FEMA flood maps had been. Since then, Harris County Flood Control District has invested billions in bayou widening, detention basins, and stormwater infrastructure, and flood maps have been updated. But flooding risk in Houston extends well beyond FEMA zones, always check address-level flood history, not just zone designation. Property taxes range from 1.8% to 2.5% effective rate, and MUD (Municipal Utility District) taxes in master-planned suburban communities can add another 0.5-1.5% on top. On a $325,000 home, total property-related taxes can reach $10,000+ annually. An agent who calculates total monthly cost, mortgage, property taxes, MUD taxes, HOA, flood insurance, homeowners insurance, rather than just showing listing prices is the difference between a smart Houston purchase and a costly surprise.

Neighborhoods in Houston

Every neighborhood has its own character, price point, and lifestyle. Here's what you need to know about Houston's most popular areas.

The Heights

Houston's most sought-after inner-loop neighborhood. Victorian bungalows, Craftsman cottages, and new-construction townhomes on tree-lined streets. 19th Street and Heights Boulevard provide walkable shopping, restaurants, and local boutiques. A strong community identity with historic preservation standards, farmers markets, and bike-friendly streets. Popular with young families and professionals drawn by the neighborhood's character, walkability (rare in Houston), and proximity to downtown. Prices reflect the premium, this is Houston's answer to Brooklyn Heights.

$675,000
Walk Score 75
Schools: B+

Montrose

Houston's most diverse and culturally vibrant neighborhood, the Menil Collection (free admission), Rothko Chapel, and a concentration of galleries, vintage shops, and independent restaurants along Westheimer Road. Historically Houston's LGBTQ+ hub, now a mix of artists, professionals, and long-time residents. Bungalows, mid-century apartments, and new-construction townhomes coexist. Walkable by Houston standards, with the best restaurant density in the city. The MFA Houston and Hermann Park are nearby.

$580,000
Walk Score 82
Schools: B

River Oaks

Houston's wealthiest neighborhood, sprawling estates along tree-canopied boulevards, the River Oaks Country Club, River Oaks Shopping Center, and proximity to Memorial Park (one of the largest urban parks in the US). Old-money Houston oil families, corporate executives, and a new generation of energy-sector wealth. Tanglewood, a sub-neighborhood, offers slightly more accessible prices. The River Oaks area sets the tone for Houston luxury real estate, with some of the highest property values in Texas.

$1,500,000
Walk Score 55
Schools: A

Sugar Land

Master-planned suburb 25 miles southwest of downtown, Fort Bend ISD is one of the highest-rated and most diverse school districts in Texas. Sugar Land Town Square provides a walkable town center with shops, restaurants, and community events. New Territories, First Colony, and Riverstone are established master-planned communities. Strong Asian and South Asian community presence. Proximity to the Texas Medical Center (30-minute commute) draws healthcare professionals. Safe, family-oriented, and affluent.

$420,000
Walk Score 28
Schools: A+

Katy

Houston's western suburb anchored by Katy ISD, one of the fastest-growing and highest-rated school districts in Texas. Katy Mills outlet mall, Typhoon Texas waterpark, and multiple master-planned communities (Cinco Ranch, Cross Creek Ranch, Elyson) with pools, trails, and community centers. The Energy Corridor (BP, ConocoPhillips, Shell offices) is a 15-minute commute. New construction at accessible prices attracts families from across the metro. I-10 provides (congested) access to downtown.

$360,000
Walk Score 18
Schools: A+

The Woodlands

Houston's premier master-planned community 30 miles north of downtown, developed by The Woodlands Development Company with 220 miles of hike-and-bike trails, 148 parks, The Woodlands Waterway, and The Cynthia Woods Mitchell Pavilion (outdoor amphitheater). Market Street and The Woodlands Mall provide upscale shopping. ExxonMobil's campus (10,000+ employees), Hewlett Packard Enterprise, and numerous energy companies create local employment. Conroe ISD and The Woodlands Township deliver top schools and services. A self-contained community with its own town center.

$480,000
Walk Score 22
Schools: A+

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Nearby markets

Exploring options outside Houston? These nearby markets may fit your budget and lifestyle.

San Antonio

200 miles from Houston

Median home price

$285,000

View San Antonio agents

Austin

165 miles from Houston

Median home price

$450,000

View Austin agents

Dallas

240 miles from Houston

Median home price

$390,000

View Dallas agents

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