Is Houston Still a Good Place to Move in 2026?
A Local Homeowner’s Guide
If you are asking, "Is Houston still a good place to move in 2026?", the answer is a resounding yes—but the strategy for moving here has changed. Unlike the frantic bidding wars of years past, the 2026 Houston real estate market has shifted into a "Great Reset." We are seeing a more balanced, rational market that favors prepared buyers over impulse decisions.
With a cost of living nearly 5% lower than the national average and a job market bolstered by the Texas Medical Center and a surging tech sector, Space City remains a top destination for relocation. However, 2026 brings new variables: inventory is rising in suburbs like Cypress, Katy, and The Woodlands, while inner-loop neighborhoods remain competitive.
The 2026 Houston Outlook: Stability & Growth
The "hype" has settled into "stability." Here is what you need to know about the current landscape:
Market Normalization: National home prices are flattening, and Houston is following suit. Expect home values to remain steady or show modest, sustainable growth of 3-5%, rather than the double-digit spikes of the early 2020s.
Inventory Levels: For the first time in years, inventory is approaching a "balanced" 5-month supply. This means more negotiating power for buyers and fewer "as-is" nightmares.
Employment Hubs: While traditional oil and gas sectors are leaning into efficiency, the healthcare sector is the 2026 powerhouse, projected to add over 14,000 jobs this year alone.
Infrastructure & 2026 FIFA World Cup: Houston is currently undergoing a massive "beautification" and infrastructure push in preparation for the World Cup matches at NRG Stadium. This is accelerating road repairs and public transit improvements across the metro.
Why Move to Houston in 2026? (The Pros)
Affordability: You can still find a high-quality single-family home in the $330k–$400k range in thriving suburbs—a fraction of the cost in Austin or California.
No State Income Tax: Texas remains a haven for keeping more of your paycheck.
Diverse Economy: From NASA’s aerospace developments to the growing tech hub status (now ranked #10 in North America), the job market is incredibly resilient.
Buyer Leverage: With mortgage rates stabilizing in the low 6% range, the "rate lock" effect is fading, bringing more beautiful resale homes to the market.
Challenges to Consider (The Cons)
The Climate: The humidity remains a staple. If you’re moving from a cooler climate, the July-August heat is a significant adjustment.
Property Taxes & Insurance: While home prices are lower, Texas property taxes are higher than average, and homeowners must budget for rising insurance premiums due to Gulf Coast weather risks.
Traffic: Despite massive highway expansions like the I-10 improvements, a car is still a necessity in this sprawling metro.
Frequently Asked Questions (FAQ)
Q: Are home prices dropping in Houston? A: Prices aren't "crashing," but they are softening. In early 2026, many areas are seeing a 1-2% price adjustment, creating a "sweet spot" for buyers who were previously priced out.
Q: Which Houston suburbs are best for families in 2026? A: Cypress, Katy, and The Woodlands continue to lead for schools and amenities. However, "growth zones" like Waller and Fulshear are offering incredible value for new construction.
Q: Is the flood risk still a major issue? A: Flood mitigation is better than ever. The city recently allocated $30M for stormwater infrastructure, and new-build regulations (Chapter 19) ensure modern homes are built with higher resiliency. Always check the specific flood zone of a property before buying.