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Houston-The Woodlands-Sugar Land Housing Affordability OutlookHouston-The Woodlands-Sugar Land Housing Affordability OutlookClare Losey, Harold D. Hunt, and Reece Neathery2022-08-01T05:00:00Ztechnical-report
Residential

​​​Purchase Affo​rdability

The second quarter saw a continued uptick in both the median sales price and first-quartile sales price for the Houston-The Woodlands-Sugar Land MSA. (Figure 1).1 The year-over-year (YOY) growth in median sales price and first-quartile sales price in the Houston-The Woodlands-Sugar Land MSA measured 14.4 percent and 14.9 percent, respectively. (Table 1). The median sales price measured $353,500; the first-quartile sales price, $270,000. Meanwhile, following years of generally sluggish growth, family income witnessed robust growth. From 2021 to 2022, median family income in the Houston-The Woodlands-Sugar Land MSA increased 13.8 percent (Table 2).




At the same time, mortgage interest rates ticked upward, averaging 5.27 percent in 2Q2022 (Figure 2). All other things being equal, lower (higher) mortgage interest rates translate into lower (higher) monthly mortgage payments and ease (diminish) purchase affordability. The Federal Reserve is widely anticipated to continue to raise interest rates over the near-term to reduce inflationary pressures, which will likely prompt additional increases in mortgage interest rates. The average rate on the 30-year fixed-ra​te mortgage increased nearly 3 percentage points in the first half of 2022. For more information on the effect of mortgage interest rates on purchase affordability, see "How Higher Interest Rates Affect Homebuying​."


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1 The first quartile reflects the lowest-priced 25 percent of homes sold in a particular geography. The first-quartile sales price represents the highest home price among those lowest-priced 25 percent of homes sold. If the price of the lowest 25 percent of homes sold ranges from $100,000 to $150,000, then the first-quartile sales price would be $150,000.


To read this article in its entirety, download the pdf. ​

​Previous reports online: 

2022: 1Q2022

2021: 4Q2021​

Digital and Print2344https://www.recenter.tamu.edu/articles/technical-report/Houston-The Woodlands-Sugar-Land-Affordability https://assets.recenter.tamu.edu/Documents/Articles/2344.pdf

 

 

Houston-The Woodlands-Sugar Land Housing Affordability OutlookHouston-The Woodlands-Sugar Land Housing Affordability OutlookResidential
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