HOUSTON – As construction costs and demand increase due to low interest rates and out-of-state buyers, the local median home cost rises as well.
In May 2021, the median price of single-family homes jumped 21.7 percent to $304,000, according to the Houston Board of Realtors. The average price rose 29.7 percent to $387,000.
Sales increased 48.2 percent year over year, with over 9,700 homes changing hands in May, up from 6,550 sales in May 2020. Last month marked the 12th straight month of sales gains and the largest ever year-over-year increase.
More than 1,700—or 18 percent—of homes sold were new homes. Demand has caused construction companies to restrict the number of homes being sold to keep up.
As waitlists form for single-family homes, buyers looking to spend less than $250,000 are seeking further out from the Houston area to be able to find homes within their budget.
The Texas Real Estate Research Center has more information on housing: