Demand in 2021 led to a record-breaking year for the real estate market in Houston with townhomes and condominiums performing especially well. (Courtesy Houston Area Realtors)
Between the continuing coronavirus pandemic, and supply and labor shortages, housing construction has been sluggish in Houston, according to a January 2022 report from the Houston Association of Realtors.
Despite fewer available homes, demand in 2021 led to a record-breaking year for the real estate market, with HAR reporting more than $40 billion being spent, a 28.2% increase from 2020. Even though the year set new highs, single-family home sales were actually down 4.5% in December 2021 when compared to December 2020.
The average price of single-family homes came in at $392,449, an increase of 13.5% from the previous year, according to the release. Townhouses and condominiums maintained the year-to-year trend of increased sales, with average prices reaching $258,139, a 13.8% increase.
“Limited inventory and shortages of building supplies and labor on the new construction side also posed serious challenges, but the market powered through it all to achieve a record year,” HAR Chair Jennifer Wauhop said with Better Homes and Gardens Real Estate.