A typical home in the Houston-The Woodlands-Sugar Land metro area costs $168,300, higher than in Texas as a whole, where the typical home is worth $152,000. Houston’s median home value is also the fourth highest of any metro area in the state.
The price of a typical Houston home is, however, less than the national median home value of $194,500.
Residents of areas with less expensive real estate also tend to have relatively low incomes. In Houston, the typical household earns $61,465 annually, higher than both the $55,653 median household income statewide and $55,775 national figure. Houston has the fifth highest median household income of any Texas metro area.
Home values tend to be higher in dense, urban areas, where space is limited and land is more expensive as a result. In the Houston-The Woodlands-Sugar Land metro area, however, there are 717 people per square mile, far greater than the average urban population density of 283 Americans per square mile across all metro areas nationwide. Houston has the highest population density of any Texas metro area.
Home values in the metro area may also be hurt by the condition of the local job market. People often relocate for occupational reasons, and an area with higher unemployment is more likely to have less expensive real estate. The Houston-The Woodlands-Sugar Land metro area’s unemployment rate was 5.5% as of August 2016, higher than the 4.9% jobless rate nationwide.
Despite the high unemployment rate today, improved unemployment among the Houston-The Woodlands-Sugar Land workforce over the last five years — like most of the country — may have helped increase home values as a result. Since August 2011, the Houston unemployment rate has fallen by 2.4 percentage points. Over the same period, home values in the metro area increased by 20.2%. Nationwide, the unemployment rate improved by 4.1 percentage points as the median home value increased by 12.0%.
Areas with low home values are often fairly well-educated. In addition to the lower-paying jobs that educated residents often hold, the lack of good schools and universities are likely to decrease demand for nearby homes. In Houston, 31.5% of adults have at least a bachelor’s degree, a share roughly equivalent to the 30.6% of Americans with similar education nationwide.
|10||Santa Rosa, CA||$512,100|
|9||Oxnard-Thousand Oaks-Ventura, CA||$528,700|
|8||Los Angeles-Long Beach-Anaheim, CA||$540,600|
|7||Santa Maria-Santa Barbara, CA||$547,600|
|4||Urban Honolulu, HI||$629,900|
|3||Santa Cruz-Watsonville, CA||$668,300|
|2||San Francisco-Oakland-Hayward, CA||$718,400|
|1||San Jose-Sunnyvale-Santa Clara, CA||$823,700|