Housing prices in Houston have experienced a decline, with condos seeing the most significant drop. According to Homes.com, the median price for a condo in Houston last month was $182,250, which is 21 percent lower than the previous year and nearly $50,000 less. In comparison, the overall housing price in Houston fell by only 1.5 percent during the same period.
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 added, “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 also noted that increased insurance premiums and homeowners association (HOA) fees are contributing factors to the declining condo prices.
Houston remains the best-supplied housing market in the United States, but growth has slowed recently. Inventory levels stopped increasing in September after nine months of growth. Condo inventory grew by only 15 units compared to September 2024—a 4 percent increase—while detached home inventory grew by almost one thousand homes or 9 percent year-over-year.
Last month, both Houston and Austin registered the largest decrease in median home price nationally at 1.5 percent each. Other major Texas metropolitan areas did not offset these declines; Dallas/Fort Worth saw prices rise by 1 percent while San Antonio remained flat. Only four other cities—Atlanta, Tampa, Seattle, and Las Vegas—also reported depreciating home values.
Conversely, cities in the Rust Belt led gains in home sale prices: Pittsburgh, Detroit, and Saint Louis all recorded appreciation rates above 7 percent.
Developers such as Transwestern, Satya, and Marriott International have shown interest in branded condo projects across Houston recently. This follows Howard Hughes Holdings’ introduction of a Ritz-Carlton development in The Woodlands area.
