HOUSTON, Texas (KTRK) — The city of Houston’s reputation as a great city with a low cost of living is at stake.


Houston residents are facing rising home prices, rising rental costs and escalating insurance rates.


Local real estate expert Tricia Turner joined Eyewitness News to explain how housing affects this city’s affordability.


Turner said interest rates are the biggest disparity in housing in the past two decades of her experience.


Rising interest rates are impacting potential home buyers across the country. However, as a Gulf Coast city, Houston has been particularly hard hit by rising insurance rates.


First-time home buyers are hit hard by the affordability crisis.


Turner said younger people are facing economic challenges such as student debt and credit card debt.


There is also a cultural change. Younger generations are prioritizing experiences and education while waiting longer to start a family.


Turner said she thinks mortgage rates will drop some next year, but that’s not guaranteed.


If they improve, it could give buyers a better chance at affordability.


Homebuyers who are still struggling to find affordable housing in today’s market, even with recent mortgage rate cuts, may still find it challenging as home prices rise.


For people looking to buy a home in 2025, Turner recommends knowing your budget.


Focus on your monthly home payment, which is affected by the price of the house, your down payment, mortgage interest rate, loan term, home insurance and property taxes.


You may not be able to afford your dream home right now, but consider your budget and buy something practical.


Follow Briana Conner for updates on this story Facebook, X And Instagram.



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