- Houston-The Woodlands-Sugar Land home prices increase by 4.2% year-over-year in May 2025.
- National house price appreciation slowed to 2.1%, the lowest since 2012.
- Increased supply and still-elevated mortgage rates affect national affordability.
According to the latest report from First American Data & Analytics, the Houston-The Woodlands-Sugar Land metropolitan area experienced a 4.2% increase in home prices year-over-year for May 2025. The month-over-month growth also showed a positive trend with a 1.3% increase from April 2025.
Nationally, house price appreciation has decelerated, reaching a growth rate of just 2.1% year-over-year, marking the slowest pace since 2012. Chief Economist Mark Fleming noted that while affordability has been impacted by rising mortgage rates, the increase in the supply of homes has slightly improved market conditions for buyers by mitigating some of the effects of these rates.
The report further breaks down the Houston-The Woodlands-Sugar Land market into various price tiers: starter homes saw a 2.8% increase, mid-tier homes went up by 1.1%, and luxury homes increased by 1.8% over the last year. This segmented growth is part of a broader trend where several Northeast and Midwest markets outpaced national appreciation rates.
Despite slight declines in some Southern and Western markets, the overall national outlook sees a mixed impact on home equity, as noted in areas like Tampa, Fla., where a 4% decline followed a significant increase during the pandemic boom.
The next release of the First American Data & Analytics House Price Index report is scheduled for the week of July 14, 2025, providing further insights into the evolving dynamics of the housing market across the U.S.
