FAQ for Buyers
FAQ: Buying a Home in Houston, TX (2025)
1. Is now a good time to buy in Houston?
Yes — if you're planning to stay 5+ years. Home prices in Houston remain relatively affordable compared to other major U.S. cities, and long-term appreciation is strong. However, buyers should be aware of high property taxes and rising insurance costs.
2. What is the average home price in Houston?
As of mid-2025, the median home price in Houston is around $296,000. Prices vary significantly by neighborhood — from under $200K in some suburbs to $500K+ in popular areas like The Heights or West University.
3. How much are property taxes in Houston?
Houston has some of the highest property taxes in the country. Rates average between 2.1% and 2.3% of your home’s assessed value annually. For a $300,000 home, expect to pay $6,000–$7,000 per year.
4. How much do I need for a down payment?
FHA loans: As little as 3.5% down
Conventional loans: Typically 5%–20% down
For a $300,000 home, that means anywhere from $10,500 to $60,000+, depending on the loan type and your credit.
5. Are there first-time homebuyer programs in Texas?
Yes. Texas offers several programs:
TSAHC (Texas State Affordable Housing Corporation): Down payment assistance & low-interest loans.
My First Texas Home: Offers mortgage credit certificates and help with closing costs.
6. What neighborhoods are popular for buyers?
Young professionals: Midtown, The Heights, EaDo
Families: Katy, Cypress, Sugar Land, Pearland
Luxury buyers: West University, River Oaks, Memorial
Investors: Third Ward, Near Northside, and areas along the METRORail line
7. What kind of insurance do I need?
At minimum:
Homeowners insurance: ~$150–$200/month
Flood insurance (strongly recommended): ~Varies based on FEMA flood zone — Houston is flood-prone.
8. Should I worry about flooding in Houston?
Yes. Many parts of Houston are in floodplains, and flooding has affected homes outside official flood zones. Always check flood risk before buying and consider flood insurance regardless of zone status.
9. How long does it take to close on a house in Houston?
Typical closing time is 30–45 days, assuming financing, appraisal, and inspection go smoothly. Cash buyers may close faster.
10. Do I need a real estate agent to buy a home?
It's highly recommended. In Texas, the seller usually pays the buyer’s agent commission, so working with a buyer’s agent typically costs you nothing and can help protect your interests.
