Katy and Fulshear Home Affordability Slips as Prices Climb, HAR Q2 2025 Report Shows
Home affordability in Katy and Fulshear faced new headwinds in the second quarter of 2025, even as the broader Houston market saw a modest improvement, according to the Houston Association of Realtors’ latest Housing Affordability Index.
While 39% of households across the Houston metro could afford a median-priced home in Q2 — up from 37% last year — the story was different in Katy and Fulshear, where rising prices and qualifying incomes kept many buyers on the sidelines.
In Katy, only 27% of households could afford a median-priced home, with prices reaching $420,000 and monthly payments averaging $2,960. Buyers needed a minimum annual household income of $118,400, down slightly from 2024 but still well above the regional median.
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Fulshear, one of Fort Bend County’s fastest-growing areas, posted even lower affordability at 22%. The median home price jumped to $550,750, with a monthly payment of about $3,880, requiring an annual income of $155,200 — up 2.5% from the previous year.
HAR Chair Shae Cottar commented, “While affordability challenges remain for many people, the Houston market is showing encouraging signs of balance. Mortgage rates have been edging lower and recently hit their lowest point since April, which could draw more prospective buyers into the market. At the same time, many remain cautious, with inflation playing a key role in their decisions.”
Rental Relief Offers Some Hope
Renters in Katy and Fulshear saw more stability. HAR’s Rental Affordability Index revealed that 46% of Houston-area renters could afford the median lease price for a single-family home, which fell to $2,100 in Q2 2025. This price point required a minimum income of $84,000, making renting a more viable option for many households priced out of homeownership.
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Local Market Dynamics
The Katy and Fulshear housing markets remain competitive, with family-friendly amenities, top-rated schools, and growing infrastructure keeping demand high despite affordability constraints. However, the gap between incomes and home prices is widening, pushing first-time buyers toward smaller homes or alternative financing options.
Quick Facts — Katy & Fulshear Q2 2025 Housing Market
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Katy: 27% affordability, $420,000 median price, $2,960 monthly payment.
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Fulshear: 22% affordability, $550,750 median price, $3,880 monthly payment.
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Tiffany Krenek has been on the My Neighborhood News team since August 2021. She is passionate about curating and sharing content that enriches the lives of our readers in a personal, meaningful way. A loving mother and wife, Tiffany and her family live in the West Houston/Cypress region.
