Houston rents are now more affordable than Houston area home sale prices. That is the conclusion of an analysis performed by Attom Data Solutions. Both rents and home prices have risen faster than wages in many areas of the country, but the fizzling energy boom brought a lot of new apartments to Houston. This has caused a dramatic softening in Houston rents. Houston area home prices, however, have softened by a smaller degree. The key difference has been the availability of inventory. Houston has plenty of rental homes, but inventory of affordable single-family homes is still rather thin. Once you move up the price bands, that’s not the case, but finding a nice affordable home to buy is still a challenger in Houston Texas.
The latest numbers from Attom via RealtyTrac show the median price of a home in Fort Bend County of $269,192 with 48 percent of the average salary needed to buy that home. It only took 35.9 percent of the average salary to rent a 3-bedroom home priced at $1432. According to Attom Data’s numbers it took 28.5 percent of the average wages in Harris County to afford a home at the median price of $202,160, while it took 26.8 percent of the average wages for the fair-market Houston rent of a 3-bedroom home.
If you are interested in another look at the rent vs buy equation, I have a comparison for Cinco Ranch that you might also find interesting. The unfortunate truth is that Houston area home prices are still rather high in many areas. If you are looking at mortgage rates of 4 percent or higher, housing affordability is diminished even further. For those looking to rent a home in Houston Texas, the numbers are probably more favorable than they have been in quite some time.