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Houston’s real estate market has always been a dynamic landscape—shaped by energy prices, job growth, natural disasters, and evolving buyer preferences. Over the last five years (2020–2025), the city’s property values have undergone significant shifts, offering both challenges and opportunities for buyers, sellers, and investors.
Let’s take a look at how Houston’s property values have changed year by year and what’s driving these trends.
2020–2021: Pandemic-Driven Surge
When the COVID-19 pandemic hit in early 2020, no one knew how real estate would respond. But in Houston—as in many parts of the country—the market boomed.
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Median home price (end of 2020): ~$310,000
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Year-over-year increase into 2021: ~3–4%
Low interest rates, remote work, and a desire for more space fueled buyer demand. Suburbs like Katy, Cypress, and Pearland saw a surge in activity, and inventory dropped dramatically.
️ 2022–2023: Record Prices and Stabilization
By mid-2022, Houston hit record highs.
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Average single-family home price (July 2022): ~$445,000
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Median home price (July 2022): ~$350,000
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Year-over-year growth (2022): ~4.7%
But this growth started to taper by late 2022, as rising interest rates cooled down the frenzy. While prices didn’t crash, the rate of growth slowed, and homes began staying on the market longer.
New construction remained strong, especially in outlying areas like Richmond, Fulshear, and Conroe, drawing in buyers seeking more space for less money.
️ 2024: Cooling Off, Not Crashing
In 2024, the Houston housing market began to settle into a more normalized pace.
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Median home price (end of 2024): ~$337,000
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Year-over-year growth: ~2.1%
The rapid rise in mortgage interest rates made affordability a key issue. Many buyers were priced out, and investors became more cautious. However, Houston remained more affordable than markets like Austin or Dallas, keeping it attractive to both in-state and out-of-state buyers.
2025: Stable Growth With New Challenges
As of early 2025, property values continue to rise modestly.
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Median home price (Feb 2025): ~$390,000
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Annual growth: ~3.2%
While the market has found some balance, home insurance costs and climate risk are now emerging as real concerns. Areas prone to flooding or hurricanes may see future price suppression due to higher premiums or projected long-term risk. Still, strong demand in resilient neighborhoods is keeping the market steady.
Key Takeaways
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Over the past 5 years, property values in Houston have risen roughly 20–25% overall.
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Growth was fastest in 2020–2022, driven by low interest rates and pandemic-related migration.
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Since 2023, the market has moderated due to rising interest rates and affordability concerns.
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New factors like insurance premiums and climate risk are beginning to influence buyer decisions.
Final Thoughts
Houston’s real estate market has proven remarkably resilient over the past half-decade. While growth has slowed compared to the peak years, the city continues to offer strong long-term value thanks to its job market, affordability, and regional diversity.
For buyers and investors, the key in 2025 is local insight—knowing which neighborhoods are still poised for appreciation and which ones might face headwinds. Whether you’re entering the market now or planning for the future, Houston still has plenty of opportunity—if you know where to look.