Latest Insights

In 4Q24, Houston's land market experienced significant growth in the outer suburbs, with Brookshire leading a 144% surge in home sales, largely due to new master planned developments like the Sunterra community. Other areas such as Porter/New Caney West, Conroe Northeast, Waller, Fulshear/South Brookshire/Simonton, and Hockley also saw increased land sales, driven by affordable home prices and new construction. December 2024 saw a notable 16.3% year-over-year increase in single-family home sales, with 7,162 units sold that month. Active listings grew by 21.6%, reaching 45,714 properties, contributing to a balanced market with a 4.0-months supply of inventory.

In 3Q24, Houston's urban land market remained constrained with limited transaction volume. The scarcity of desirable urban infill land combined with high prices and elevated interest rates discouraged potential buyers. This environment allowed well-capitalized investors to close deals on premium urban parcels, while suburban areas saw more viable development, particularly for industrial and single-family projects. Notable transactions in town included purchases for industrial and mixed-use projects on the northwest side and the Uptown area, where prices per foot vary widely based on location, ranging from $200-300 per SF for prime plots within urban zones.

In 2023, the Houston regional land market was marked by a steep decline in sales activity and a slowdown in price growth, but market conditions in 2024 have improved some. In 2Q24, the situation became more complex, with price trends showing mixed results and the rate of decline in total sales volumes starting to level off again. Moreover, the housing inventory now stands at 4.3 months of availability, reflecting a recovery from the critically low levels experienced in recent quarters. Houston's inventory is improving and will lead to more balanced market conditions.