Minimizing the mortgage

Downsizing unlocks significant homeowner savings in Houston, says study

Dropping two bedrooms can save $133,000, per the study.

Photo courtesy of Kuper Sotheby's International Realty

Downsizing can do more than clear out the clutter in your home. It also can help declutter the finances of Houston homeowners, a new study indicates.

The study, published by self-storage platform StorageCafé, shows homeowners in the Houston metro area can yield savings of $133,000 by downsizing from a four-bedroom home to a two-bedroom home.

StorageCafé says it calculated the savings based on home values for a four-bedroom and two-bedroom house, property taxes for each house, and closing costs for the sale of the larger home and purchase of the smaller home.

According to StorageCafé, the most profitable move in the region (more than $310,000) would be from a four-bedroom home in The Woodlands to a three-bedroom home in Houston.

“Homeowners leaving Houston for a smaller home in the more exclusive The Woodlands will end up with just $10,000 in savings, while those relocating to Sugar Land are gaining almost $40,000 in savings,” StorageCafé says.

In the study, Houston ranks 17th among the country’s top biggest metro areas for savings from downsizing.

Dallas-Fort Worth ranks 12th, with savings from downsizing estimated at $189,300. StorageCafé says homeowners in Dallas would gain more than the average amount if they downsized to Arlington (about $354,000) or Fort Worth (about $348,000).

“Texas is generally more affordable than every other big state in the nation,” StorageCafé says, “and consequently [average] savings are not on the hefty side.”

The San Francisco metro area tops the list. StorageCafé pegged the region’s savings for downsizing at $406,600.

Despite the financial benefits of downsizing, Austin real estate agent Job Hammond, adjunct professor of real estate and finance at Austin Community College, says more homeowners are now snapping up bigger homes.

“There was a recent movement towards downsizing and living in smaller spaces convenient to shopping, lifestyle, and amenities,” Hammond tells StorageCafé. “After experiencing the global pandemic of COVID-19, individuals are now seeking larger living environments further away from the cities that have home offices, media rooms, and home gyms that accommodate a work-from-home environment.”

rankings

rent affordability news

Houstonians need to make nearly $68,000 to afford rent in 2025

Photo courtesy of Dolce Midtown Apartments

undefined

A new rental report from Zillow has revealed Houston renters need to make about 23 percent more money than they did five years ago in order to afford rent in 2025.

Zillow analysts examined the income needed to afford rent in 50 major U.S. metros, and determined rent prices in each city as of April 2025.

The average Houston renter needs to make $67,731 a year to afford living in the city, the report found. To afford rent for a single-family home, the income needed increases even further to $85,017.

Despite Houston's rising rent cost of living, it's still more affordable than many other cities. Nationally, the average income needed for someone to comfortably afford rent comes out to nearly $81,000. The study says that figure has increased nearly 35 percent since 2020.

"Housing costs have surged since pre-pandemic, with rents growing quite a bit faster than wages," said senior Zillow economist Orphe Divounguy. "This often leaves little room for other expenses, making it particularly difficult for those hoping to save for a down payment on a future home. High upfront costs are often overlooked, which can keep renters in their current homes."

Rent prices in Houston averaged $1,693 last month, which is less costly than the national average rent price of $2,024. Additionally, Houstonians are spending about 24 percent of their income on rent, while the typical American spends almost 30 percent of their income on rent.

Renters are also saving hundreds of dollars in comparison to those that own their homes, as a recent SmartAsset study discovered the median monthly housing costs for a Houston homeowner came out to $2,219.

At least we're not living on the East or West Coast, where eight U.S. metros require six-figure incomes to afford rent. Residents in San Jose, California need to make $136,532 a year to afford rent, the highest out of all 50 U.S. cities. Rent prices in San Jose came out to $3,413 in April.

Here's how much money renters need to afford living in other Texas metros, according to Zillow:

Dallas – $71,413
Austin – $68,840
San Antonio – $58,590

zillow housing report rent prices affordability houston

Minimizing the mortgage

Downsizing unlocks significant homeowner savings in Houston, says study

rent affordability news

Houstonians need to make nearly $68,000 to afford rent in 2025

New owner of Texas Renaissance Festival revealed in our top 5 stories

Houston's new Napa Valley-inspired restaurant sets opening date

Ben Berg's New York-inspired, fancy burger joint will soon shutter