It might feel like every home in Houston these days is valued at $1 million or more—and in some neighborhoods, you’re not wrong, thanks in part to the pandemic-proof real estate market.
But a new study from Lending Tree explains just how many homes in the Bayou City surpass that illustrious benchmark; and in turn begs the ever-present question: Is Houston still an affordable city to live in? The answer: It’s complicated.
According to the report, more than 32,000 homes in Houston are valued at over $1 million. That’s about 2 percent of the more than 1.4 million homes in our massive metro—earning Houston 16th place on the list of the 50 largest metros in America ranked by percentage of million-dollar homes.
If you look at the total number of homes in this luxurious price range, Houston stacks up higher on the list. The Bayou City’s market has the 11th highest total number of homes in the millionaires club, edging out Dallas by 2,658 homes, we should note.
At the same time, the gap between Houston’s average home value and those million-dollar estates was quite disparate. According to the report, the average home in Houston is valued at $193,000, which was, coincidentally, the 16th lowest average among the 50 cities.
Nationally speaking, Houston is doing pretty well in terms of affordability. About 4.3 percent homes in the country's 50 largest metros are valued at $1 million or more, putting Houston significantly below the national average. And compared to top ranked San Jose, California, where more that 47 percent of homes are valued above $1 million, Houston looks like a bargain town.
The top four cities on the list were all located in California, in fact: San Francisco at No. 2, Los Angeles at No. 3, and San Diego at No. 4. New York City claimed the fifth-highest spot on the list with 9.9 percent of homes falling into the $1 million range.
Austin was the only city in Texas to rank higher on the list than H-Town, coming in at 11th. In the capital city, just over 3 percent of homes are valued at over $1 million. In Dallas (ranked 20th), 1.9 percent of homes fall into that price range, and in San Antonio (ranked 34th), 1.2 percent break the million-dollar mark.
So is Houston affordable? It depends on who you ask. But if you're looking for luxury homes, there's no debate about it. Houston has thousands—32,167 to be exact.