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Houston's ultra-luxury real estate market explodes with top sales growth in U.S. of homes valued $10M or more

2109 River Oaks Boulevard, Houston luxury home for sale

This luxurious Houston home at 2109 River Oaks Boulevard is pending sale for $14.5 million.

Photo via Compass

Luxury home sales in Houston have grown by a monumental 200 percent for the first half of 2023, according to the new mid-year report by Compass Luxury. This staggering growth indicates a new trend for the city's impressive and explosive real estate market despite recent economic troubles and limited housing inventory.

Houston ranked at the top with Dallas-Fort Worth on Compass' list of ultra-luxury real estate markets — meaning homes selling for $10 million or more — during the first six months of the year. There were 13 total markets that had more transactions surpassing the $10 million mark in this time period than this same time last year.

For some perspective, Compass' data says there were three homes in Houston that together sold for a total of $31.5 million during Q1 and Q2 of this year. That's compared to just one sale in 2022 at $15.98 million.

Dallas-Fort Worth barely edged Houston out of the No. 1 spot in the report with a higher sales volume of $43.79 for the same number of sales in Q1 and Q2.

The report says high-earning buyers are seeking homes in Houston thanks to low taxes and the city's vacation destination status. But it's the city's dynamic culture, education and medical institutions that are major draws for the ultra-luxurious crowd, according to Compass real estate agent Dee Dee Guggenheim Howes.

"Our city offers economic prosperity, cultural richness, and diverse architecture, irresistible to those seeking the epitome of fine living," she said. "As the population increases, so does the demand for amenity-rich luxury listings. From spa-like retreats, lush outdoor living spaces, and private sports facilities, to tasting rooms, gourmet kitchens, and exquisitely designed wet bars, ultra-luxury buyers expect the best."

Laura Sweeney, another Compass real estate agent and native Houstonian, predicts a continuation of the strong growth in Houston's real estate market for the duration of 2023.

"The overall market has leveled off some with rising interest rates and fluctuations in consumer confidence; however, inventory has remained low and people who need a house are still buying," Sweeney said. "Demand has even created multiple offer situations and pushed prices upward for special properties."

The top 10 real estate markets with transactions over $10 million for the first half of 2023 are:

No. 1 – Dallas-Fort Worth (200 percent)
No. 2 – Houston (200 percent)
No. 3 – Boulder, Colorado (100 percent)
No. 4 – Jackson Hole, Wyoming (60 percent)
No. 5 – Greater Seattle (55.5 percent)
No. 6 – Martha's Vineyard, Massachusetts (50 percent)
No. 7 – Westchester County, New York (50 percent)
No. 8 – Greater Boston (42.8 percent)
No. 9 – City of Boston (40 percent)
No. 10 – Wine Country, California (25 percent)

The full mid-year ultra-luxury real estate report can be found on Compass Luxury's website.

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Houston ranks among top 10 U.S. cities for mobile home living

Photo by Brian Wangenheim on Unsplash

Manufactured homes have come a long way from the "trailers" of the past, according to StorageCafe.

As Houston residents navigate the city's fluctuating real estate market, manufactured homes – also known as mobile homes – are gaining traction among potential buyers seeking an affordable path to homeownership.

A recent housing study found Houston ranks among the top 10 U.S. cities with the largest mobile home inventory. Texas, as a whole, has the second-highest share of manufactured housing in the nation.

StorageCafe's housing insights report analyzed the supply of manufactured housing inventory, average sales prices of new manufactured homes, and compared pricing trends against the median value of all housing units (regardless of construction date) across all 50 states and 100 U.S. cities.

The report's author hails manufactured housing as "a cornerstone of affordability" in the country, with just under 8 million mobile homes representing about 5.4 percent of the U.S. housing supply.

There are 776,232 manufactured homes in Texas, the report found, which is 6.2 percent of the state's entire housing stock. Houston is home to the 8th highest number of mobile homes in the nation, at 10,953 units.

Here's how the rest of the top 10 shakes out:

No. 1 – Mesa, Arizona (29,335 units)
No. 2 – Phoenix, Arizona (20,564 units)
No. 3 – Jacksonville, Florida (15,393 units)
No. 4 – Largo, Florida (14,131 units)
No. 5 – Tuscon, Arizona (14,128 units)
No. 6 – San Jose, California (11,668 units)
No. 7 – San Antonio, Texas (11,208 units)
No. 8 – Houston, Texas (10,953 units)
No. 9 – Los Angeles, California (10,622 units)
No. 10 – Sunrise Manor, Nevada (9,952 units)

Why manufactured home living is gaining popularity
Affordability is of the main reasons Texas residents are turning to manufactured home living. The average sale price for a mobile home in Texas was $112,500 in 2024, or less than half of the median sale price for all Texas homes ($313,200).

The report specifies that the cost for a manufactured home does not include the cost of land in the same way that a conventional home does. Depending on zoning and local laws, residents who own a mobile home either lease the lot their home sits on, or they have to purchase a lot outright.

"Most manufactured homes sit either in parks (land rent, higher exposure to rent hikes or park closures) or subdivisions (you own the land)," the report said. "In some communities, resident-owned cooperatives (co-ops) allow homeowners to collectively purchase the land beneath their homes. This setup provides stability and protection against rising lot rents, which can otherwise affect those living in privately owned parks."

Nevertheless, StorageCafe maintains that the generally lower cost of a manufactured home still makes it a viable path to homeownership. Affordability is especially crucial for younger adults like Gen Zers and Millennials who also don't want to "compromise on quality or independence."

"Today’s younger buyers value flexibility, efficiency, and minimal maintenance, and many are drawn to simpler lifestyles that align with financial freedom and mobility," the report said. "With the rise of remote work, more Millennials and Gen Zers are exploring the idea of living affordably in smaller, well-designed spaces, often in communities with shared amenities or scenic settings that were once thought to appeal only to retirees."

Manufactured homes have also experienced a "glow up" in recent years, the report added. Most manufactured homes have open floor plans, "stylish interiors," and come equipped with modern amenities like smart-home technology and energy efficient features.

"As a result, they’re no longer viewed as a fallback option, but rather as a savvy, forward-thinking path to homeownership for cost-conscious Americans of all ages," the report said.

Mobile home living elsewhere in Texas
Other than San Antonio in Houston in the top 10, there were 12 more Texas cities that ranked among the top 100. El Paso came in at No. 16 with 7,089 mobile homes in the city, and Laredo ranked two spots behind with 6,785 units.

Here's how other Texas cities fared in the report:

No. 20 – Dallas (6,195 units)
No. 21 – Austin (6,184 units)
No. 22 – Fort Worth (6,069 units)
No. 29 – Corpus Christi (4,823 units)
No. 34 – Pharr (4,409 units)
No. 48 – Arlington (3,818 units)
No. 60 – Mission (3,207 units)
No. 65 – Bryan (3,063 units)
No. 67 – Edinburg (3,407 units)
No. 98 – Denton (2,441 units)

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