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Houston Housing Market Outlook for 2026

Houston Housing Market Outlook for 2026

Oak Forest, Garden Oaks, and The Heights

In 2025, the Houston housing market didn’t crash, and it didn’t roar back. It split.

Across Oak Forest, Garden Oaks, and The Heights, the same pattern kept showing up in our listings and buyer showings. Homes that were priced right, updated well, and located on strong streets sold. Everything else waited.

Buyers became more analytical. Sellers had to be more strategic. That shift is what sets up 2026.

We’re entering what we call a Year of Fundamentals, where condition, location, pricing discipline, and monthly payment math matter more than hype.

What 2025 Really Looked Like on the Ground

Across Houston, the market slowed from the frenzy of 2021 through 2023, but it didn’t stall. It normalized.

In these three close-in neighborhoods, we saw:

  • More inventory
  • Longer days on market
  • Fewer emotional buyers
  • More inspections, concessions, and negotiation

That created two very different outcomes.

Well-located, well-maintained homes still sold cleanly. Cosmetic flips and over-priced listings didn’t.

Neighborhood by Neighborhood

Oak Forest: A Fundamentals Test

Oak Forest remains one of the strongest value plays just outside Loop 610, thanks to lot sizes, schools, and proximity to The Heights and downtown.

In 2025, the dividing line was clear. Homes with newer roofs, HVAC systems, solid drainage, and functional layouts attracted serious buyers. Homes that were simply painted and staged without meaningful upgrades faced tougher negotiations and longer timelines.

Inventory climbed, which gave buyers more breathing room.

What that means for 2026:
If you own a 1950s or 1960s home in Oak Forest, the condition of the infrastructure, including roof, foundation, HVAC, plumbing, and electrical, matters more than ever. Buyers will still pay for the right house, but they are no longer paying for deferred upkeep.

Garden Oaks: The Reinvestment Effect

Garden Oaks continues to benefit from something that’s easy to overlook, retail and infrastructure momentum.

The Shepherd corridor, new mixed-use projects, and the coming redevelopment of the former Sears site into a Target-anchored center are changing how buyers think about daily convenience.

Buyers aren’t paying for what Garden Oaks is today. They’re paying for what it becomes over the next five years.

What that means for 2026:
Owners who sell before the full retail and infrastructure build-out is complete may leave money on the table. Buyers who enter now are positioning ahead of the next wave of price appreciation.

The Heights: Micro-Markets Rule

The Heights remains one of Houston’s most location-sensitive neighborhoods.

In 2025, we saw a widening gap between streets near trails, retail, and walkable amenities, and those that felt more isolated. Buyers paid premiums for proximity to the White Oak Bayou Greenway, the MKT Trail, and local shopping and dining.

Smart home features, energy efficiency, and connectivity are no longer bonuses here. They’re part of baseline buyer expectations.

What that means for 2026:
The Heights won’t be one market. It’ll be dozens of micro-markets. Homes near walkable amenities and trail systems will continue to outperform, even in a balanced market.

What Will Drive 2026

Mortgage Rates and Buyer Psychology

With 30-year fixed rates in the low-6 percent range, buyers can finally do math again.

That changes everything.

Monthly payments now matter more than list prices. Buyers compare homes not just to each other, but to what they could rent or buy down the street. Sellers who ignore that math will feel it quickly.

The Return of Normal Negotiation

Inventory levels in these neighborhoods are hovering around four to five months, which is the definition of a balanced market.

That means:

  • Inspections matter
  • Seller concessions are back
  • Pricing errors get punished

Not with crashes, but with time.

Neighborhood Momentum Matters

Buyers will continue paying premiums for areas that feel like they’re getting better to live in.

Trail expansions, retail reinvestment, and infrastructure upgrades translate directly into long-term demand. Oak Forest, Garden Oaks, and The Heights all benefit from that, but in different ways.

How to Win in 2026

If you’re buying

Decide what actually matters. Lot size, layout, trail access, flood exposure, and school zoning will guide your strategy more than granite countertops.

Watch listings that sit. Homes that miss the market at launch often become the best opportunities once sellers adjust.

Ask better questions. The age of the HVAC and roof, plus any prior water issues, matter more than surface finishes.

If you’re selling

Certainty sells. Buyers in 2026 are analytical. Clean inspections and documented maintenance history create leverage.

Price for movement, not hope. The homes that attract buyers early almost always sell for more.

Sell the lifestyle, honestly. Trail access, walkability, and retail proximity still drive value when they’re presented factually.

The Bottom Line

2025 proved this market rewards clarity.

2026 will reward strategy.

Whether you’re looking at a trophy home in The Heights or a classic ranch in Oak Forest, this is one of the most stable decision windows Houston has seen in years for buyers and sellers who understand how their specific street fits the bigger picture.

If you’re trying to decide whether 2026 is the year to buy, sell, or hold in Oak Forest, Garden Oaks, or The Heights, that decision should be based on street-level data, not headlines.

That’s what we do every day at The Moore Real Estate Group.

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