2025 News Archive

The Houston housing market showed positive growth in 1Q25, with a slight increase in new home starts and closings. The annualized pending home sales rose by 12.7%, reaching 9,165 in March 2025, while single-family home closings increased by 2.6%, totaling 7,429. The average home price climbed to $427,221, reflecting a 3.7% year-over-year growth. Today's strong home activity serves as a leading indicator for future land demand rather than a reflection of current land sales and value performance. It typically takes 2-3 years to convert raw land into builder-ready lots, and 6-18 months for construction. Additionally, the unemployment rate stood at 4.2%, while employment growth remained strong, with a 2.4% increase in total nonfarm employment. These economic indicators signal a healthy, expanding market, with continued demand for land and housing development.

Houston's retail market remained balanced in 1Q25, with the vacancy rate inching up to 5.4%, just above the five-year average. This slight increase reflects a market settling into a stable rhythm, with supply and demand largely in sync. While 3.3 million SF of retail space is currently under development, about 40% remains available for lease. Still, brokers report that prime, first-generation space is quickly claimed before hitting the open market, offering little relief for tenants seeking new, high-quality options.