- Houston-The Woodlands-Sugar Land home prices increased by 1.8% year-over-year in April 2025.
- National home prices grew by 2.0% year-over-year for the same period, indicating a slowing growth rate.
- Persistently high mortgage rates and increased housing inventory continue to impact the market.
In April 2025, home prices in the Houston-The Woodlands-Sugar Land metropolitan area increased by 1.8% compared to the previous year, according to the First American Data & Analytics Monthly Home Price Index (HPI) report. This indicates a moderate growth amidst a broader trend of decelerating price appreciation across the U.S. housing market.
Nationally, home prices grew by 2.0% year-over-year, reaching a new record high, but the annual growth rate has now slowed to its lowest level since 2012. Mark Fleming, Chief Economist at First American, attributed this to persistent high mortgage rates and a boost in housing supply. Fleming notes that while affordability remains a challenge, the slower pace of price increases could benefit potential home buyers by enhancing their purchase power.
The HPI report also segments price changes into different market tiers for metropolitan areas. In the Houston metro area, the starter home tier saw a 1.0% increase, mid-tier homes rose by 1.9%, and luxury homes experienced a 3.1% increase over the year.
First American Financial Corporation (FAF, Financial), which provides the data through its division First American Data & Analytics, highlights that markets like Pittsburgh, Baltimore, and St. Louis saw significant growth, particularly in the starter home tier, due to relative affordability and limited supply driving demand.
The next release of the First American Data & Analytics House Price Index is scheduled for the week of June 16, 2025. More information and detailed data are available on the First American Economic Center website.
