A family I consulted with a few years ago comes to mind. In early 2021, they were a couple debating whether to buy a home in the outskirts of Houston or continue renting, and they ultimately chose to purchase. Now, if we reassess the value of that home, we can see that their choice was not a bad one based on the numbers.

The median home price in Houston has risen from around $250,000 in early 2021 to about $320,000 now. The cumulative increase over five years is approximately 28%. Considering that the national average was around 35-45%, Houston has recorded a lower rate of increase.

Year by year, Houston has shown a relatively moderate trend compared to other major Texas cities. Even during the price surge from 2021 to 2022, it was not as steep as in Austin or Dallas, and the adjustment during the interest rate hike from 2022 to 2023 was also not significant. The steady supply of new homes across the large metropolitan area seems to have suppressed both sharp increases and decreases.

A characteristic of the Houston market is its geographical expansiveness. Unlike other major cities that face supply shortages due to geographical constraints, Houston has plenty of flat land to expand in all directions, making new developments relatively easier. This aspect has likely helped prevent sharp price increases while also lowering the risk of significant declines.

One of the driving factors behind the increase is the diversification of the energy industry. With a broader employment base that includes not only the traditional oil and gas sector but also healthcare, aerospace, and renewable energy, there has been a steady influx of population. The increase in healthcare jobs centered around the Texas Medical Center has also acted as a stable demand base.

Looking ahead, recent market trends suggest that a gradual increase without major fluctuations is likely. However, local variables such as hurricane season and fluctuations in energy prices remain factors that could still impact the market, so this is something to keep an eye on.

From the perspective of Korean households, Houston can be seen as a relatively stable market with a diverse industrial base. It is accessible for those looking to buy for personal residence without the burden of rapid price increases. However, it is crucial to check whether the area has a history of flooding or requires flood insurance before making a purchase.

Like the family mentioned earlier, I have often seen that maintaining a patient attitude in a steadily rising market, even if the increases are gradual, can be beneficial.