Mortgage Calculator for Houston, TX

Houston, TX Housing Market Overview

As of 2026, the median home price in Houston is approximately $345,000, reflecting moderate year-over-year appreciation. The city’s housing market remains active, with a steady influx of buyers driven by Houston’s strong job market and diverse economy. Prices can vary significantly by neighborhood, with inner-loop areas like Montrose and The Heights typically commanding higher values, while suburban communities such as Alief and Northshore offer more affordable options. Houston’s market shows resilience, with both single-family homes and townhomes in demand, though inventory can fluctuate based on new construction and population trends.

Property Taxes in Houston, TX

Property taxes in Houston are determined by overlapping taxing authorities, including Harris County, the City of Houston, and local school districts. As of 2026, the effective property tax rate for most Houston homeowners ranges from 2.2% to 2.8% of assessed value, which is somewhat higher than the Texas state average. The median annual property tax bill in Houston is estimated to be around $6,500. Homestead exemptions are available for primary residences, and additional exemptions may apply for seniors, disabled homeowners, and veterans. These exemptions can significantly reduce the taxable value of your home, but it’s important to apply through the Harris County Appraisal District or the respective county if located in Fort Bend or Montgomery County.

Homeowners Insurance in Houston, TX

Houston homeowners insurance premiums are influenced by local risks, including hurricanes, flooding, and severe weather. The city’s proximity to the Gulf Coast and extensive floodplain areas mean that many properties require separate flood insurance policies, especially those located within FEMA-designated flood zones. As of 2026, the average annual premium for standard homeowners insurance in Houston is approximately $2,600, though costs can be higher for homes in high-risk flood areas or those with past claims. Homeowners are encouraged to assess both windstorm and flood insurance needs carefully, as these risks can significantly impact coverage and cost.

Buying Costs in Houston, TX

Typical closing costs for buying a home in Houston generally range from 2% to 5% of the purchase price. These costs may include lender fees, title insurance, appraisal fees, and recording charges. Unlike some major U.S. cities, Houston does not impose a municipal transfer tax on real estate transactions. However, buyers should budget for one-time expenses such as inspections, surveys, and attorney fees if applicable. Title insurance rates are regulated across Texas, but additional endorsements and optional coverages may increase the total outlay at closing.

Houston Neighborhoods and Market

• River Oaks: One of Houston’s most prestigious neighborhoods, with home prices typically starting above $1 million.
• The Heights: Popular for its historic charm and walkability, median home prices are commonly in the $600,000 to $800,000 range.
• Montrose: Known for its arts and dining scene, homes generally range from $400,000 to $700,000.
• West University Place: Family-friendly and centrally located, home prices often exceed $900,000.
• Midtown: Features townhomes and condos, with prices typically between $350,000 and $600,000.
• Alief and Northshore: More affordable, with many single-family homes priced under $300,000.
• Energy Corridor and Memorial: Suburban feel with homes from $400,000 to $900,000 depending on size and location.

Living and Working in Houston

Houston is home to major employers in energy, healthcare, aerospace, and technology, including ExxonMobil, the Texas Medical Center, and NASA’s Johnson Space Center. The city’s cost of living remains lower than the national average and is competitive within Texas, especially for housing and transportation. Utility costs can be higher during summer months due to air conditioning demand. Houston’s diverse economy and affordable living contribute to its popularity among both families and young professionals.

First-Time Buyer Programs in Houston, TX

Houston offers several first-time homebuyer programs in addition to statewide options. The City of Houston’s Homebuyer Assistance Program (HAP) provides down payment and closing cost assistance to eligible buyers purchasing within city limits. Harris County also offers the Down Payment Assistance Program for purchases outside the city but within the county. These programs typically require buyers to complete homebuyer education and meet income and purchase price limits. Statewide programs, such as those offered by the Texas State Affordable Housing Corporation (TSAHC) and the Texas Department of Housing and Community Affairs (TDHCA), are also available to Houston residents who qualify.

Frequently Asked Questions