In the first quarter of 2025, housing affordability across Texas, particularly in the Greater Houston area, showed some interesting trends.
According to the Houston Association of Realtors’ (HAR) Q1 Housing and Rental Affordability Report released on May 8, a significant portion of households in the Galveston County region were able to afford homes in nearby League City. Here’s a deeper look at the data and what it means for homebuyers.
League City’s Home Affordability in 2025
The report states that during the first three months of 2025, 35% of Galveston County households were financially able to buy a median-priced home in League City. The median price for homes in the League City area was recorded at $372,500, a slight decrease from $390,000 during the same period in 2024.
To purchase a median-priced home in League City, a household needed to earn a minimum qualifying income of $114,000. This figure highlights the challenges that prospective homebuyers face in terms of meeting income requirements to buy a home, even in a slightly more affordable market than in the past.
Greater Houston Area and Statewide Trends
The Houston area overall was slightly more affordable, with 40% of households able to purchase a median-priced home. The median price for homes in Houston was $337,400, and the necessary qualifying income to afford a home in this price range was $95,200.
On a broader scale, across Texas, the affordability situation was quite similar, with 40% of households statewide able to afford a median-priced home. Statewide, the median home price was $334,900, and a household would need an income of $94,400 to qualify for purchasing a median-priced home.
Market Stability Amid Uncertainty
Shae Cottar, the Chair of HAR, commented that the first quarter of 2025 showed signs of stability in the Houston housing market, which is encouraging news for potential buyers.
However, she also pointed out that despite this stability, economic uncertainty is causing some prospective homebuyers to approach the market with greater caution. The rise in caution is particularly noticeable when it comes to big financial decisions, like buying a home.
This sense of caution may be contributing to slower buying activity, even though more households are technically able to afford homes. With the economic situation still unpredictable, many people are hesitant to make significant financial commitments, especially when it comes to long-term investments like purchasing a home.
In summary, the housing market in Galveston County and the Greater Houston area is showing a mix of stability and caution in 2025. While more households are able to afford median-priced homes in both League City and Houston, economic uncertainty continues to impact buyers’ willingness to commit.
For those who are financially ready to buy, the market remains stable, but others may choose to wait as they monitor the evolving economic landscape.
