2025 State of Housing in Houston.
Houston Housing Crisis: Climate and Costs Collide
Why This Matters
- For Renters: Rent jumped 9% in one year. Many families must choose between rent and other basic needs.
- For Homebuyers: Home prices rose faster than incomes. The typical family can't afford the typical home.
- For Communities: Over 500,000 people live in areas threatened by floods, heat, and bad air.
- For Policy Makers: Climate and housing problems are connected. Solutions must address both.
- For Our Future: Houston is becoming less affordable and less safe to live in.
The Big Picture: What the Numbers Show
The typical home in Harris County now costs $325,000. But the typical household can only afford a home priced around $195,000. That's a gap of $130,000 between reality and what people can pay.
"Every year, that gap gets wider," says Stephen Sherman. He's a research scientist at the Kinder Institute. "Homeowners' insurance alone increased by 18% in the last year. It went up nearly 40% over the past few years."
The affordability gap is the difference between home prices and what people can actually pay. When the gap is large, fewer people can buy homes. This pushes more families into renting, which drives up rent prices too.
Rising Rent Squeezes Families
Buying a home isn't the only problem. Rent is also getting much more expensive. The median rent in Houston jumped 9% in just one year. Even when adjusted for inflation, that's still a 6% increase.
"There's a saying in housing policy: 'The rent eats first,'" Sherman explains. "People will pay rent before anything else. Then they have to cut back on other things they need. They might skip heat or utilities. The burden spreads to other parts of their budget."
When people spend too much on housing, they have less money for food, healthcare, and education. This affects the whole family's wellbeing.
Climate Threats Hit Hard
The 2025 report includes a special focus on climate problems. It's the first time the annual report has looked closely at how weather and environment affect housing.
Key Climate Findings
- Over 500,000 residents face three threats: flooding, extreme heat, and bad air quality
- More than 106,000 homes don't have central air conditioning
- Over 40,000 homes lack modern heating systems
- These problems hit low-income neighborhoods hardest
"Vulnerable people live in vulnerable places," says Caroline Cheong. She's the Associate Director of the Kinder Institute's Center for Housing and Neighborhoods. "More than 500,000 people in Harris County live in neighborhoods with less access to things like central AC and modern heating. That's a public health concern, especially in a region with extreme temperatures."
Sherman adds: "The reality is that our housing system isn't built to withstand the climate we live in. Houston is becoming not only less affordable but less livable."
Who Gets Hurt Most
These problems don't affect everyone equally. Low-income families and communities of color face the worst impacts. They're more likely to:
- Live in areas that flood often
- Have homes without air conditioning
- Face poor air quality
- Struggle to afford insurance
- Spend more than half their income on housing
The report notes that air quality is particularly bad in many Hispanic and Latino neighborhoods. This can lead to health problems like asthma.
"The cost of coping with and adapting to these conditions is borne most heavily by those who can least afford it," the report warns.
Why This Is Happening
Several things are making housing less affordable:
- Rising home prices: Demand is high, but there aren't enough homes for sale
- Increasing insurance costs: More storms mean higher insurance rates
- Growing rent: When people can't buy, they rent. This increases rent prices
- Stagnant wages: Pay isn't keeping up with housing costs
- Climate change: More floods and storms make homes more expensive to maintain
Population Shifts
About half of all Harris County neighborhoods lost population between 2023 and 2024. Most of these neighborhoods are inside Beltway 8 and within the city of Houston.
People are moving to areas where housing is cheaper. But often these areas have worse climate risks and fewer services.
A Small Bright Spot
The report did find one positive trend. There was a small increase in homeownership rates. Cheong thinks this might be because:
- Some people saved money during the pandemic
- People are moving here from more expensive states like California and New York
But this small improvement doesn't solve the larger problems the report identifies.
What Needs to Change
The researchers say Houston needs action on several fronts:
Solutions the Report Suggests
- Build more affordable housing that can withstand climate threats
- Improve infrastructure in vulnerable neighborhoods
- Help low-income families afford insurance
- Create policies that connect housing and climate planning
- Invest in cooling centers and emergency resources
- Upgrade old homes to handle extreme weather
"The connections between public health and housing are becoming more apparent as they relate to climate," Cheong says. "These connections are gaining more attention, which will hopefully translate into policy changes at the state and city levels."
About This Report
The 2025 State of Housing report is the sixth annual housing report from the Kinder Institute. It tracks changes in Houston and Harris County's housing system each year.
This year's report used data from more than 15 sources. It includes a new interactive dashboard that anyone can use. The research was funded by Wells Fargo.
The report builds on earlier years' findings. Each year, it has shown housing affordability getting worse. This year's special focus on climate adds a new dimension to the problem.
What You Can Do
Understanding these problems is the first step. Here are ways to get involved:
- Learn about climate-resilient housing options
- Contact local officials about affordable housing policies
- Support organizations working on housing justice
- Check if you qualify for assistance programs
- Share this information with your community
Explore the Full Report
The Kinder Institute has created an interactive dashboard with detailed data. You can explore housing trends in your neighborhood.
VIEW THE REPORT