Latest Insights

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.

In 4Q24, Houston's land market experienced significant growth in the outer suburbs, with Brookshire leading a 144% surge in home sales, largely due to new master planned developments like the Sunterra community. Other areas such as Porter/New Caney West, Conroe Northeast, Waller, Fulshear/South Brookshire/Simonton, and Hockley also saw increased land sales, driven by affordable home prices and new construction. December 2024 saw a notable 16.3% year-over-year increase in single-family home sales, with 7,162 units sold that month. Active listings grew by 21.6%, reaching 45,714 properties, contributing to a balanced market with a 4.0-months supply of inventory.

In 3Q24, Houston's urban land market remained constrained with limited transaction volume. The scarcity of desirable urban infill land combined with high prices and elevated interest rates discouraged potential buyers. This environment allowed well-capitalized investors to close deals on premium urban parcels, while suburban areas saw more viable development, particularly for industrial and single-family projects. Notable transactions in town included purchases for industrial and mixed-use projects on the northwest side and the Uptown area, where prices per foot vary widely based on location, ranging from $200-300 per SF for prime plots within urban zones.