Houston Housing Market Outlook for 2025: Buyer-Friendly Conditions Should Continue

Recent housing forecasts for the Houston metro area in 2025 suggest that home prices will essentially flatline over the next year or so.

That’s good news for home buyers, because it takes some of the urgency out of the house hunting process. Buyers won’t feel as compelled to rush into the market.

Sign up for Texas Housing Weekly

Here’s more good news: Housing market inventory in the Houston area has risen significantly over the past couple of years. Going forward, this should make it easier for buyers to find a suitable home in their target location and price range.

Home Price Prediction: A Flat Line Into 2025?

We begin with home prices and a recent forecast issued by Zillow. The company predicted that the median home value for the Houston-The Woodlands-Sugar Land metropolitan area will essentially flatline over the next year or so.

Specifically, the group predicted that the median house price would dip by -0.7% during the 12-month period ending in September 2025.

The following graphic shows Houston-area home values over the past few years, based on Zillow’s data and combined with some notes from our experts.


Graphic showing Houston metro area home values over the years

Some noteworthy trends illustrated by this graph:

  • The median house value rose by around $70,000 over the past four years.
  • Prices topped out in 2022 and have been mostly flat since then.
  • Houston home values are still well below the national average.

Home buyers who are planning to enter the housing market later this year or in 2025 can take comfort from these recent trends and predictions. With little-to-no price growth expected over the next year, buyers won’t feel the same sense of urgency as those who purchased in the past.

Buyers Have More Properties to Choose From

According to a September report from Realtor.com, the total number of active real estate listings in the Houston metro area rose by 32% over the previous 12 months.

That means there are many more homes listed for sale today than a year ago.

This brings more good news for Houston-area home buyers. In 2025, buyers should have an easier time navigating the market and finding a suitable property within budget.

As of October 2024, the Houston housing market had about a 4-month supply of homes for sale. The nation as a whole had about a 2.8-month supply during that same timeframe.

Forecast: A Slower-Paced Housing Market in 2025

The Houston real estate market has slowed down over the past two years. We predict that the current (and more sluggish) pace of home sales will continue into 2025 as well.

Translation: Don’t expect any overheated bidding wars to break out.

Sign up for the Texas Housing Weekly newsletter

According to the Realtor.com report cited earlier, homes for sale in the Greater Houston area spent a median of 51 days on the market before going under contract. That was nine days longer than a year earlier, which indicates a slower real estate market.

For comparison: During the pandemic-fueled home buying frenzy of 2021, properties in Houston spent a median of just 10 – 12 days on the market before being sold. So things have slowed way down since then.

This is another positive trend from a home buyer’s perspective.

A slower pace within the real estate market gives buyers more time for price research, inspections, and other forms of due diligence. They can carefully consider the merits of each individual property, without feeling pressured to make a quick decision.

More Sellers Are Reducing Their Prices

Here’s another ongoing trend that could benefit Houston home buyers in 2025.

Last month, roughly 40% of homes listed for sale in the Houston metro area had a price reduction. That’s based on Multiple Listing Service (MLS) data and other sources. Nationally, only about 20% of properties had a price reduction last month.

In this context, a price reduction (or “cut”) occurs when a homeowner brings their house onto the market at once price and later reduces it. Such reductions usually result from a lack of interest or offers, which forces the seller to adjust their pricing strategy.

As of fall 2024, the Houston-area real estate market had a higher percentage of price cuts when compared to most other U.S. metros. These are favorable conditions for local home buyers. It shows that sellers are more motivated these days and willing to “make a deal.”

Our Houston housing market forecast for 2025 calls for a continuation of the trends outlined above. Overall, we expect to see little or no home-price growth over the next year, in most parts of the metro area. Home buyers will enjoy more options and more bargaining power, as well.

Disclaimer: This report contains real estate market predictions for the Greater Houston area extending into 2025. Such views are the equivalent of an educated guess based on current trends, and therefore far from certain. The publisher of this website makes no claims or assertions about future real estate conditions.


Facts About the Houston Metropolitan Area 

Planning a move to the Houston area in the near future? Want to get the lay of the land? Here’s some information you’ll find helpful.

  • Official designation: Houston-The Woodlands-Sugar Land, TX metropolitan statistical area (MSA)
  • Also referred to as “Greater Houston” for short
  • Metro population as of the last census: 7,340,118
  • Fifth most populous metropolitan area in the United States
  • Second most populous in Texas, after Dallas-Fort Worth
  • Total area: 8,269 square miles
  • Median household income: $74,863 (the same as the U.S. median)
  • 2,682,645 households with an average of 2.7 persons per household 
  • 61% of households are owner-occupied (homeowners)
  • 39% of households are renter-occupied (renters)

Major Cities in the Metro Area

1. Houston (population 2,314,157)

The largest city in Texas and the fourth-largest in the United States. The economic hub for the area, Houston has a strong energy sector, particularly oil and gas. It’s also a leader in healthcare, space exploration (home to NASA’s Johnson Space Center), and international trade. 

2. The Woodlands (population 127,736)

Located about 28 miles north of downtown Houston, The Woodlands is a master-planned community that has evolved into a major hub for business and luxury living. Technically, it’s a census-designated place (CDP) rather than a city. The Woodlands offers extensive parks, green spaces, and golf courses, along with high-end shopping and dining.

3. Sugar Land (population 111,026)

Located about 20 miles southwest of downtown Houston, Sugar Land is a rapidly growing suburban city. It was founded as a sugar plantation in the mid-1800s and incorporated in 1959. Sugar Land is known for having good schools and safe neighborhoods.

4. Pasadena (population 146,716)

Located southeast of Houston, Pasadena is an industrial hub largely based on oil refining and petrochemicals. While industry dominates its economy, the city also has many neighborhoods, parks, and recreational facilities. Pasadena is known for its annual Strawberry Festival, which celebrates its agricultural past.

5. Pearland (population 127,736)

Just south of Houston, Pearland is one of the fastest-growing cities in the area. It offers a mix of suburban living with easy access to Houston’s amenities. Pearland is the third-largest city in the Greater Houston metro area, after the cities of Houston and Pasadena.

6. League City (population 116,320)

According to the city’s website: “League City is a waterfront community nestled along the shores of Clear Lake, 30 miles south of downtown Houston, with proximity to Galveston Bay and the Gulf of Mexico. The city regularly ranks among the safest, most affordable, and best places to live and raise a family in the state of Texas and in the U.S.”

Brandon Cornett headshot
Brandon Cornett

Brandon Cornett is a veteran real estate market analyst, reporter, and creator of the Home Buying Institute. He has been covering the U.S. real estate market for more than 15 years. About the author