Houston

Is Houston a good market for first-time buyers?

Yes. Houston is the most affordable of Texas's major metros, which keeps FHA and conventional loan limits comfortable for most purchases and supports a large first-time-buyer pool. Combined with Texas down payment assistance and a steady supply of new construction, a low-down-payment purchase is realistic across much of the metro.

Source: U.S. Census Bureau, American Community Survey FHA loans →

How does the Texas Medical Center affect the Houston market?

The Texas Medical Center, the largest medical complex in the world, anchors a steady stream of physician, resident, and healthcare-worker relocations into Houston, alongside energy, aerospace, and port employment. That diversification keeps demand more stable through cycles than in metros tied to a single industry, which matters when you are timing a purchase.

Source: U.S. Census Bureau, American Community Survey

Do I need flood insurance to buy a home in Houston?

It depends on the property. Parts of the Houston metro sit in FEMA-designated flood zones, and if a home is in a high-risk zone, your lender will require flood insurance in addition to standard homeowners coverage. Checking the flood-zone status early matters because the premium affects your monthly cost and how much home you qualify for. Many Houston homes are not in high-risk zones, so it is worth confirming address by address.

Source: Federal Emergency Management Agency (FEMA)

What taxes will I pay buying and owning in Houston?

Texas has no state income tax, no real estate transfer tax, and no mortgage tax, so the tax that matters most is the annual property tax, which runs relatively high. The residence homestead exemption and a strong disabled-veteran exemption offset that for those who qualify. See the Texas hub for the statewide detail.

Source: Texas Comptroller of Public Accounts Texas taxes and programs →

Is new construction a good option in Houston?

Often, yes. Houston has one of the most active new-home markets in the country, especially in the growing suburbs, and builders frequently offer incentives. New-construction financing has its own timeline and considerations, from rate locks during the build to the final appraisal, so it helps to line up financing before you sign with a builder.

Source: U.S. Census Bureau New-construction financing →

When do I need a jumbo loan in Houston?

Not often. Houston's affordability keeps most loans within the baseline conforming limit, so jumbo financing is uncommon. It shows up mainly in higher-end areas like River Oaks, Memorial, and parts of The Woodlands when the loan amount exceeds the local ceiling.

Source: Federal Housing Finance Agency (FHFA) Jumbo loans →

What does it cost to own a home in Houston?

Your monthly cost combines the loan payment, Harris County property taxes (which run relatively high), homeowners insurance, and flood insurance where required. The homestead exemption lowers the tax bill on a primary residence. Because there is no state income tax or transfer tax, the trade-off in Texas is higher property tax in exchange for low transaction and income taxes.

Source: Texas Comptroller of Public Accounts

Which parts of Houston are best for first-time buyers?

First-time buyers often find the most room in the outer suburbs and newer communities west and north of the city, where prices line up with FHA limits and Texas assistance. Running the numbers on price, taxes, insurance, and any flood premium early helps you target a market where the monthly cost comfortably works.

Source: Texas State Affordable Housing Corporation Affordability calculator →

Is it a good time to buy a home in Houston?

Houston's affordability and diversified job base keep it active in most conditions, and a rebalancing Texas market in 2026 has given buyers more inventory and negotiating room. The right time depends more on your own readiness and rate environment than on the season. The market snapshot above shows the current local figures as they are verified.

Is Houston affordable compared to the rest of Texas?

Yes. Houston is the most affordable of Texas's major metros, sitting below Austin and Dallas-Fort Worth on price, which keeps FHA and conventional limits comfortable and supports a large first-time-buyer market. The current median is shown in the snapshot above once verified.

Do I need flood insurance to buy a home in Houston?

It depends on the property's flood zone. If a home is in a FEMA-designated high-risk zone, your lender will require flood insurance on top of standard homeowners coverage, and that premium affects your monthly cost and qualifying. Many Houston homes are not in high-risk zones, so confirm the status address by address before you commit.

Are there a lot of new-construction homes in Houston?

Yes. Houston has one of the most active new-home markets in the country, concentrated in the growing suburbs such as Katy, Cypress, and Fulshear. Builders often offer incentives, and new-construction financing has its own timeline, so it helps to line up financing before signing with a builder.

What first-time homebuyer programs are available in Houston?

Houston buyers use Texas's statewide programs, including TDHCA's My First Texas Home and TSAHC's Homes for Texas Heroes and Home Sweet Texas, which offer down payment and closing-cost assistance with a fixed-rate first mortgage. See the Texas hub for full eligibility and confirm current terms with a participating lender.

How high are property taxes in Houston?

Texas property taxes run relatively high, and Harris County is no exception, which is the trade-off for having no state income tax. The residence homestead exemption lowers the taxable value on a primary home, and disabled veterans may qualify for a larger exemption. See the Texas hub for the statewide detail.

When do I need a jumbo loan in Houston?

Not often. Houston's affordability keeps most loans within the baseline conforming limit, so jumbo financing is uncommon. It mainly comes up in higher-end areas such as River Oaks, Memorial, and parts of The Woodlands when the loan amount exceeds the local ceiling.

What credit score do I need to buy a house in Houston?

It depends on the program. Conventional loans typically expect higher scores, FHA may allow lower scores with other compensating factors, and Texas assistance programs generally look for around 620 to 640. There is no single number, and your full financial profile matters more than any one threshold.

Does Houston have a transfer tax or mortgage tax?

No. Texas charges no real estate transfer tax and no mortgage tax, so buyers and sellers owe nothing on the sale price or loan amount at closing beyond recording fees. The main Texas tax to plan for is the annual property tax, which is relatively high.

What neighborhoods are popular in the Houston area?

Katy and Cypress draw families for schools and new construction, Sugar Land and Pearland offer a wide range of price points, The Woodlands trends higher-end, and close-in Memorial and River Oaks are where jumbo financing is more common. The best fit depends on your commute, budget, and flood-zone tolerance.