Real estate report

Here's how much Houston home prices have jumped in just 5 years

Here's how much Houston home prices have jumped in just 5 years

1113 Welch Houston home for sale
Home prices in Houston are going up, but not as fast as other North American markets. Photo courtesy of SWRE Real Estate Services

Houston is one of the most buyer-friendly housing markets in the country, but that doesn't mean home prices are stagnant. In fact, local home prices have seen a double-digit increase in recent years, according to a new report.

Real estate news site Point2 Homes reports that from December 2013 to December 2018, Houston's median home price increased from $188,500 to $240,000, a 27 percent jump that equates to an additional cost of $51,500. And while that may seem steep, Houston actually had the third lowest home price growth of the Texas metros studied and 16th lowest in North America.

Neighboring Fort Worth outpaced the rest of the state and was one of 18 North American cities with a price jump over 50 percent (in all, 83 metros were reviewed). The median home price in Cowtown grew 52 percent, from $148,000 in December 2013 to $225,000 in December 2018, a $77,000 jump. 

By comparison, other Texas metros saw relatively modest growth. Austin had a 33 percent jump ($226,000 to $301,391), and San Antonio saw a 32 percent increase ($171,400 to $226,200). Dallas had the second lowest home price growth among the Texas cities studied, with a median home price increase of 24 percent ($229,900 to $285,000). At 12 percent, El Paso had the lowest median home price growth in the state (from $137,650 to $154,000).

"Compared to just five years ago, 40 cities in the U.S., 31 in Mexico, and 10 in Canada have seen significant home price hikes, putting considerable strain on the average homebuyer. With more and more people opting for a connected, urban lifestyle, and with the younger generation’s desire to reduce commute time, demand for urban housing is skyrocketing," the report says.

Detroit topped the North America list with a surprising 97 percent increase in home price but a net increase of only $30,143. San Francisco, however, saw the highest net increase: a staggering $550,000 price increase in just five years.