Houston TX Home Sales 2024 Rising: Hottest Communities

Three Montgomery County communities recently topped a list of the Houston area’s hottest residential markets, highlighting how buyers are flocking to new construction in the suburbs as they adjust to higher mortgage rates.

Porter/New Caney West, near Interstate 69 and Grand Parkway, saw the largest percentage increase in Houston-area home sales in the first quarter, increasing 121% year over year to reach 263 transactions, according to a new report from Houston. Association of Real Estate Agents.

Conroe Southeast ranked second on the list with total sales jumping nearly 86 percent to 273 in the first quarter.

The report ranks the “fastest growing” communities based on the percentage increase in transactions in a given area each quarter.

Newly constructed homes accounted for 68% of all home sales in the Porter/New Caney West and Conroe Southeast areas in the first quarter, according to HAR. And in three of the other fastest growing communities highlighted by HAR – the Crosby area, the Cleveland area and Conroe Northeast – new construction accounted for at least half of all sales activity.

“We are seeing a trend among consumers to prioritize affordability without sacrificing lifestyle,” said HAR President Thomas Mouton of Century 21 Exclusive Properties. “Many of these suburban communities are responding with a wave of new construction, offering modern homes at attractive prices.”

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Since mortgage rates soared in mid-2022, new housing construction has helped fill the existing housing shortage in the Houston area. Although buyers benefit from a growing inventory of available homes in Houston, they still need to find a way to stretch their budget as mortgage rates remain relatively high. New home builders can often offer incentives to help buyers lower their mortgage rates.

Within Porter/New Caney West, about 30 miles northeast of Houston, the subdivisions topping the list for highest sales were Tavola West, Pinewood at Grand Texas and The Highlands, according to HAR.

Within Conroe Southeast, Ladera Creek, Mavera and Ladera Trails were the top-selling subdivisions in the first quarter, HAR reported.

Most of these developments are neighborhoods with more affordable, mid-priced new housing, said Lawrence Dean, president of real estate data consultancy Community Builders Advisory Services.

Dean said it’s not surprising to see an increase in sales in any of those communities, particularly those in Conroe, east of I-45.

“Conroe is one of the fastest growing cities in the region and the state,” Dean said. “These areas are home to some of the most affordable new homes, located close to job centers in The Woodlands and elsewhere in north Houston.”

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Conroe Northeast also ranked fourth on HAR’s list of fastest growing communities with a 48% increase in sales across its 176 transactions.

Looking specifically at sales – rather than percentage increase in activity – the communities with the highest numbers in the first quarter include Cypress South (572 transactions), Katy Old Towne (537) and Lake Conroe (477 ), according to HAR data.