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These 2 Houston ZIP codes rank among the most gentrified in the nation

This Houston neighborhood ranks as the third most gentrified in the U.S.

Photo courtesy of Greenwood King

As Houston further develops into a world-class city, and its communities thrive and propagate at record pace, there’s a word that goes hand-in-hand with the boom: gentrification.

The influx of highly educated, well-heeled residents into traditionally more humble communities is nothing new. Just last year, talk in Houston centered around gentrification, and how to create revitalization, not displacement. Now, a national study names two Houston ZIP codes in the top 20 most gentrified since the turn of the century.

The ZIP codes of 77003 (East Downtown) and 77007 (primarily Rice Military, Memorial Heights, and parts of Washington Corridor) rank Nos. 3 and 19, respectively, in a survey conducted by RentCafe.

In a dramatic display of demographic shift, the report states that in 2000, the number of residents with a bachelor degree or higher in 77003 was 425. As of 2016, that number jumped to 2,308 — a 442.6 percent rise. In 2000, the median home price was $62,554; in 2016, the average home was valued at $240,317 — a price jump of 284 percent.

Meanwhile, though 77007 ranked No. 19 in overall gentrification metrics, it stands out as the only ZIP code in the top 20 with a median household income above $100,000 per year. Analysts noted that what landed the area on this list is the fact that just a decade and a half ago, the median income of the area was less than half of the current sum. In 2000, the average median income in 77007 was $55,483, while in 2016, the average income jumped to $118,601 — a 114 percent increase. The 77007 ZIP code has seen a 107 percent home value change between 2000 and 2016 and a 188 percent increase in higher education.

Josie Lin, a Houston realtor who deals heavily in both areas, isn’t surprised by the report. “EaDo — 77003 — connects to downtown, the Medical Center, and the Ship Channel, and the light rail is close by, so it’s perfect for students and young and established professionals.” Lin calls 77003 a “good buying and renting opportunity,” and notes that the only negatives are that the area is different “block by block” and “there is still a concern about crime.”

Not so with 77007, says Lin. “That area is a different clientele — more mature professionals and quite a few ex-pats who prefer being close to Memorial Park.” Lin notes that there is “no way to stop the appreciation in 77007. The rent is higher — almost twice of what you see in EaDo. You get a bit of the suburbs and urban living. It’s a very neighborhood feel.”

Rent Cafe’s analysts took to the 2000 Census and the 2016 American Community Survey and looked at the changes that took place over a decade-and-a-half in 11,000 U.S. ZIP codes. The study ranked them on all three scales and created an average ranking to determine which areas experienced gentrification from 2000 to 2016. Only those that had more than 2000 occupied housing units in the year 2000 as well as in 2016 were included.

Houston isn't the only Texas city to land on the list. The RentCafe report ranks Fort Worth's 76102 ZIP code (downtown) as No. 6 on the list, with a 323 percent increase in home value, 103 percent increase in household income, and 122 percent increase in higher education.

East Austin's 78702 ZIP code ranks No. 13. It has seen a 212 percent increase in home value, 47 percent increase in household income, and 201 percent increase in higher education.

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THE AMERICAN DREAM

How long it takes to save for a home down payment in Houston

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Houstonians don't have to save long to afford a down payment.

Saving for a down payment remains one of the biggest barriers to homeownership nationwide, but a new report from Realtor.com shows San Antonio area buyers face a far shorter wait than most Americans.

According to the real estate site’s 2025 analysis, the typical U.S. household needs seven years to save for a standard down payment, a notable improvement from the 12-year peak in 2022. Still, the timeline remains roughly double the pre-pandemic norm, reflecting higher home prices, larger down payments, and lower household savings rates.

Houston, however, stood out as one of the most accessible major metros in the nation. The Houston-Pasadena-The Woodlands metro boasted one of the shortest time sto save for a down payment among the nation’s 50 largest markets, with households needing just 3.5 years to reach a typical down payment, according to the study.

The report found that Houston’s median down payment from January through November was $14,927. A median household income of $83,452 was estimated to produce an annual savings of $4,228. Notably, San Antonio, the only other Texas city included in the report, had the shortest time to save for a down payment at just 1.3 years.

Nationally, the time needed to save has shortened as home price growth cooled and affordability modestly improved. Still, saving for a down payment takes significantly longer than it did before the pandemic.

“Higher home prices and intensified competition have pushed typical down payments higher, at the same time that inflation and rising household expenses have reduced savings rates,” said Danielle Hale, chief economist at Realtor.com, in a release. “Although conditions have improved since 2022, today’s timeline shows that saving for a home takes meaningfully longer than it did before the pandemic, especially in high-cost markets.”

Lower savings rates have played a key role. The U.S. personal savings rate has averaged 5.1 percent of income so far in 2025, down from the pre-pandemic norm of 6.5 percent, limiting how quickly households can build funds for upfront housing costs. Meanwhile, the typical down payment has more than doubled over the past six years — rising from about $13,900 in the third quarter of 2019 to $30,400 in the third quarter of 2025.

In high-cost coastal metros, the impact is far more severe. Saving for a down payment can take 20 to more than 35 years in California cities like San Francisco, San Jose, Los Angeles, and San Diego, effectively sidelining many first-time and moderate-income buyers.

“In high-cost markets, the typical down payment alone exceeds a full year of household income,” said Hannah Jones, Realtor.com senior economic research analyst. “That reality makes homeownership feel unattainable for many buyers, particularly younger households trying to enter the market for the first time.”

Despite those challenges, the report notes that roughly three-quarters of Americans still consider homeownership part of the American dream. Realtor.com says easing rents could help first-time buyers save more, while repeat buyers may use accumulated savings to reduce loan balances and manage higher monthly payments.

“Saving consistently, even in small amounts, is a meaningful first step toward homeownership,” Jones said. “In today’s market, building that financial cushion can make a real difference when buyers are ready to act.”

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