Greater Houston households now need to earn at least $100,800 a year to afford a median-priced home, even as that median price actually slipped to $340,300 during the third quarter of 2026. The numbers mark a modest improvement for buyers compared to a year ago, but renters across the region are finding their own math getting slightly harder, not easier.
The figures come from the Houston Association of Realtors' latest Housing and Rental Affordability Report, which found that 42% of Greater Houston households could afford that median-priced home in the third quarter, up from 39% a year earlier. The median home price declined 0.4% year over year, down from $341,600 in the third quarter of 2025, according to HAR. As KHOU 11 reported, that still leaves most households priced out of a typical purchase.
Despite the drop in home prices, the typical monthly mortgage payment, including principal, taxes and insurance, actually ticked up slightly to $2,520, compared to $2,510 in the same quarter last year, per HAR's figures. The qualifying annual income needed to buy also rose modestly, from $100,400 a year ago to $100,800 now.
Renters Face a Tighter Squeeze Than Buyers
While homebuying affordability edged up, the rental side of the ledger moved the other direction. Forty-four percent of Houston-area households could afford the median monthly lease payment in the third quarter, down from 45% a year earlier, HAR's report shows. The median monthly lease itself actually dipped slightly, from $2,200 to $2,195, and the qualifying income needed to rent that median unit was $87,800, compared with $88,000 the year before.
The shift means fewer renters can comfortably afford a typical single-family lease even though the sticker price barely budged. It is a reminder that affordability and price are not always the same story; the qualifying income needed to rent the median unit also changed.
How Houston Stacks Up Nationally and Against Other Texas Metros
Houston's affordability trends track a broader statewide and national pattern. Nationally, 38% of households could afford a median-priced home in 2026, up from 35% the year before, while the U.S. median home price climbed to $432,900 from $426,800, according to HAR. The gap between what buyers earn and what homes cost remains far wider nationally than in Texas, where 45% of households could afford a median-priced home in the third quarter of 2026.
HAR's broader data, cited by Houston Agent Magazine, also showed that about 41% of Texas households could afford a median-priced home in the second quarter of 2026, up from 36% a year earlier, with the statewide median home price at $340,000 in that quarter, unchanged year over year. Houston households in the second quarter needed $102,000 in annual income to afford a median-priced home there, a 3.8% decline year over year, while the average 30-year mortgage rate that quarter was 6.41%, down from 6.79% a year prior.
What Houston's Realtor Association Chair Is Telling Buyers
Theresa Hill, HAR chair and an agent with Compass RE Texas, LLC – Houston, said affordability was improving overall, though she acknowledged the hesitation many buyers still feel. “Affordability is moving in the right direction, and that’s encouraging, but we also know many consumers are still concerned about the cost of buying a home, particularly with mortgage rates remaining elevated,” Hill said, according to the report. She added that buyers sitting on the sidelines should reconsider their options, noting a realtor can help assess what is realistic for their budget.
Her comments line up with other recent market signals. HAR separately reported that 7,030 Houston-area single-family homes were sold in September, down 5.7% from a year earlier, while conventional 30-year mortgage rates averaged 6.86% that month, up from 6.35% a year earlier. Inventory also expanded from 5.1 months to 5.5 months, according to the same HAR data, suggesting buyers have more homes to choose from even as borrowing costs climb.
A Separate Starter-Home Estimate Offers a Lower Bar
Not every measure of Houston affordability lands in the same range. A Redfin-based estimate cited by CultureMap Houston put the income needed to afford a starter home in the Houston metro at $70,384, about 4% lower than the year before — a different, more modest benchmark than HAR's median-priced-home calculation. Nationally, that same starter-home measure pegged the income needed at $70,693, underscoring how much affordability figures can shift depending on what kind of home is being measured.
For now, the headline trend in Houston is a split one: buying a median-priced home got slightly more attainable over the past year, while renting a typical single-family home got slightly less so. Both halves of that equation are likely to keep shifting as mortgage rates and inventory continue to move through the end of 2026.
