a wealth of luxury offerings

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.

real estate housing market houston dallas fort worth luxury housing

Market Upset

Houston shocks as one of 10 worst big cities for first-time homebuyers

Row of houses in Houston, Houston homes for sale

Getty Images

Houston is the worst Texas city for first-time buyers.

The Houston housing market may not be for everyone. In a surprising turn of events, Houston has flopped to the bottom of a new list of the best U.S. cities for first-time homebuyers.

WalletHub's new study — which analyzes the affordability, quality of life, and real estate market in 300 U.S. cities — ranks Houston No. 271, or the 30th worst city overall in the U.S. to buy your first home. And, when broken down by city size, WalletHub ranks Houston the 9th worst big city for first-time buyers (No. 61 out of 69).

Houston's lack of appeal for first-time buyers is essentially due to its poor affordability and quality of life scores, rather than the state of the city's housing market, according to the report's findings.

H-town ranks 216th out of all 300 U.S. cities for its affordability, and it appears farther down the list for its quality of life, landing 284th nationally. Houston's cost of living, however, is better than most cities, ranking 51st overall.

The city's real estate market ranking is among the top 100 in the U.S., at No. 91, but that wasn't enough to outweigh its less-than-stellar rankings in the other main categories.

Other metrics (where No. 1 is the best and No. 150 is average) that factored into Houston's overall ranking include:

No. 31 – Total home energy cost
No. 77 – Rent-to-price ratio
No. 99 – Median home-price appreciation
No. 148 – Foreclosure rate
No. 246 – Real estate tax rate
No. 270 – Property crime rates

While Houston boasts the lowest Texas ranking on the list, it isn't the only Lone Star city that is less than favorable for first-time buyers. In fact, only one Texas spot — the Dallas suburb of McKinney — lands among the top 100 of the report. A total of 20 Texas cities rank outside the top 100, with Laredo (No. 200), Mesquite (No. 202), San Antonio (No. 208), and Dallas (No. 233) joining Houston as the state's worst.

First-time buyers across the country are entering the housing market at a difficult time, the report says. The National Association of Realtors reported the share of first-time homebuyers sank to an all-time low in 2025, to 21 percent, whereas the historic national average is 40 percent.

"Buying a home for the first time is an exciting and important milestone for many Americans, but achieving that milestone is getting more difficult as prices and interest rates continue to rise," the report's author wrote. "People willing and able to invest in a house this year must balance what they want and need with what they can afford. Often, people begin searching for their dream home without a realistic idea of market prices, interest rates or even their eligibility for a mortgage."

wallethub real estate housing market first time homebuyers houston reports

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