Houston’s Current Real Estate Market

October 16, 2025 – Houston’s real estate market is in a phase of significant recalibration, drawing strong parallels to the period following the 2014 oil price downturn. The current climate of increasing inventory, stabilizing home prices, and a palpable shift in leverage from sellers to buyers is reminiscent of the market dynamics seen in late 2015 and 2016.

For those who experienced Houston’s housing market after the energy boom of the early 2010s, today’s conditions will feel familiar. The frenetic pace of the early 2020s, characterized by record-low inventory and intense bidding wars, has given way to a more balanced and sustainable environment. Much like in 2015-2016, when the sharp drop in oil prices led to a cooling of the once red-hot market, the current moderation is a response to the recent surge in interest rates and a necessary correction from a period of ambitious pricing.

Data from October 2025 indicates a notable increase in the number of homes available for sale, providing buyers with more options and reducing the sense of urgency that dominated the previous few years. This rise in inventory is a key factor in the stabilization of home prices, with the median home price seeing a slight decrease compared to the previous year. Similarly, in 2016, the Houston housing market saw a slowdown in price appreciation and an increase in the months of inventory, moving closer to what is considered a healthy equilibrium.

Another telling similarity is the increase in the average number of days a home stays on the market. While well-priced and desirable properties are still moving, the overall trend is a longer sales cycle, affording buyers more time for due diligence and negotiation. This stands in stark contrast to the rapid-fire sales of the market’s recent peak.

While the economic drivers may differ—a global pandemic and subsequent interest rate hikes in the 2020s versus a sector-specific downturn in the mid-2010s—the outcome for the housing market is strikingly similar. In both instances, the Houston real estate market has demonstrated its resilience by shifting from a period of unsustainable growth to a more measured and healthy pace. This transition, as seen in both the current market and the 2015-2016 period, ultimately fosters a more stable and accessible market for a wider range of homebuyers.