Hey Neighbor! 👋

I promise, I’m a positive person—but someone needs to tell y’all the hard facts about the housing market. Houston’s real estate scene is shifting, and whether that’s good or bad depends on where you stand. 👀

 In this issue:

• 🏡 Housing Market Standoff – Strong economy, stuck buyers.

• 💰 Affordability Squeeze – Rising costs, more homes soon?

• 🏙️ Office Conversions – Smarter growth or a quick fix?

  Let’s break it down. 

Danielle Kim, Publisher Hello From Houston & Realtor.

🏡 Is Houston’s Housing Market as Strong as They Say?

If you think Houston real estate is in great shape, you might want to take a second look. On one hand, companies keep moving in, the economy is strong, and new residents arrive daily. On the other, affordability is still shutting out a huge portion of buyers.

The truth is, the average middle-class buyer can’t afford a home in the suburbs unless they have:

• Substantial cash savings or home equity

• Or they’re using builder incentives (which come with their own risks—see this week’s YouTube video.

And let’s talk about builders.

There is no housing shortage. This isn’t about not having enough homes—it’s about builders controlling inventory to keep prices high. They trickle out supply just enough to maintain demand without forcing price drops.

They’re flooding the suburbs with “affordable” homes, but that doesn’t mean buyers are getting a great deal. Many of these homes aren’t built for long-term value or appreciation—they’re built to sell fast while keeping market prices inflated.

Market data right now:

• Sales have ticked up, though most of that is new construction, not resale

• Prices aren’t climbing, appreciation has stalled

• What no one mentions? The number of expired and withdrawn listings is almost double the number of homes that actually sold in many suburbs.

Sellers who can’t get their price are just pulling homes off the market instead of lowering prices. It looks like plenty of homes are selling but what most are not seeing is that even more are being withdrawn and not selling.

Some suburbs are holding steady, while others are already slipping in value. Prices may dip slightly this year, but how much depends on how many homes hit the market and whether buyers can afford them.

What do you think? Are we about to see more action, or is Houston going to hold steady? Hit reply and let me know.

🏗️ The Future of Master-Planned Communities—What Makes a Good One?

Houston’s suburbs follow a cycle—some master-planned communities thrive for decades, while others peak early and stall.

A lot of people assume new means appreciation, but that’s not always true. Builders are pushing out homes fast, but long-term success depends on more than just construction.

• The best communities are built to last. The ones that hold value aren’t just rows of houses—they have a long-term plan. Slow, phased growth, commercial spaces, and thoughtful amenities separate a good investment from a short-lived trend.

• Convenience is everything. People don’t want to drive 15 minutes for coffee or groceries. Communities with built-in retail and entertainment will hold value better.

• Diversity in housing matters. If a neighborhood only has one builder and one type of home, it’s harder to resell. A mix of entry-level, move-up, and luxury homes keeps demand strong.

Houston has plenty of new communities, but not all will hold long-term value. The best ones aren’t just selling homes—they’re shaping how people will live for decades.

More on this here or watch my video here

💰 The Affordability Crisis Hasn’t Even Hit Yet

We keep seeing headlines about buyers struggling to get in, but what about homeowners trying to get out—or just stay afloat?

A lot of people who bought between 2022 and 2024 stretched their budgets, banking on lower rates by now. Many took 2-1 buy-downs. This is where the first 2 years of mortgage are at a lower interest rate and then it settles on a permanent rate at where interest rates are at that time. They did it expecting to refinance for a favorable rate. Now? Rates are still high, and those buy-downs are about to expire.

That means monthly payments are about to jump by hundreds overnight on interest alone. All this while property taxes and insurance costs also keep climbing.

• Homeowners in high-tax suburbs are already seeing mortgage payments rise due to reassessments.

• Insurance rates have jumped 30-40%, adding even more to escrow payments.

• With home values flattening or dipping in some areas, refinancing isn’t an option for many.

We haven’t seen the full impact yet because most buyers using incentives are still in their discount period. But as those payments reset over the next year or two, more homes will hit the market—not because people want to move, but because they can’t afford to stay.

So, what happens next? Buyers who have been waiting might start to see better deals, and sellers who need to move will have to price competitively.

Not all areas will feel this equally—some suburbs are still thriving and well-built homes in desirable communities will hold demand. The next year is going to be a mix of opportunities and challenges, depending on which side of the market you’re on.

(See what I mean about Houston’s housing market being a double-edged sword?)

More on this here

🚀 Is Apple Coming to Northwest Houston? Here’s What We Know

For months, rumors have been swirling that Apple is bringing a major facility to Houston, and while nothing is official yet, all signs point to northwest Houston.

Here’s what we do know:

• Foxconn, Apple’s manufacturing partner, has been expanding in the area—leasing over 480,000 square feet in the Sam Houston Distribution Center since 2021.

• In late 2024, Foxconn’s parent company bought 10+ acres near its existing warehouses in Harris County for $33 million, supposedly for AI server production.

• Apple recently announced a 250,000-square-foot advanced manufacturing facility coming to Houston, but they haven’t confirmed the exact location yet.

If you’ve been following me for the last year and a half about this area gaining long-term value… you’re welcome. 😏

More on the Foxconn expansion here

🏙️ Houston is Leading the Charge on Office-to-Apartment Conversions

Houston just became the first major U.S. city to roll out a permitting process for converting empty office buildings into apartments, and I fully support it.

For years, we’ve heard about a housing shortage, yet instead of creating well-planned communities, we’ve seen suburban sprawl filled with copy-paste homes that lack infrastructure and amenities. Meanwhile, downtown Houston has tons of vacant office space just sitting there. Now, developers have a clear path to turn them into housing.

The new guidelines make it easier and cheaper to repurpose office buildings, which could mean thousands of new apartments where people already live, work, and commute. Unlike rushed suburban developments, these will add density without overloading roads and schools.

Houston is the first to do this at scale, but it won’t be the last. If done right, this could be a game-changer for affordability, downtown vibrancy, and smarter growth.

🔗 Read more about it here

Thanks!

Thanks for reading Hello from Houston today! If you found something useful, send it to the friend who’s still convinced they can perfectly time the market.

💡 Who am I? I’m Danielle, a Houston suburb-based realtor who keeps up with builder incentives, market shifts, and new developments so my clients don’t have to. Need insight or just want to vent about home prices? I’m here—just reply