Houston real estate vs inflation: did it beat the dollar?
111% × 46%
Updated June 1, 2026 · Redfin · BLS / FRED (CPIAUCNS)
Since 2013, Houston real estate is up 111% while U.S. consumer prices rose 46%. Houston real estate far outpaced inflation — but the ride was brutal: its worst drop was 18%. Figures in U.S. dollars.
Base 100 since 2013
Why compare Houston home prices (US$/m²) and U.S. inflation (CPI-U)
Houston is the largest city in Texas and the center of the U.S. energy industry, home to the oil majors, a vast medical complex and a major port. Its housing market has long moved with the energy cycle, softening when crude prices fall and firming when they recover, and it weathered the 2008 national crash better than many metros. Hurricane Harvey's flooding in 2017 reshaped parts of the local market. Through it all Houston has stayed comparatively affordable per square meter for a metro its size, helped by sprawling supply and no state income tax, which the figures below measure against inflation.
Returns by window
| Window | Houston home prices (US$/m²) | U.S. inflation (CPI-U) |
|---|---|---|
| 1 year | 3% | 4% |
| 5 years | 10% | 24% |
| 10 years | 49% | 39% |
| since 2013 | 111% | 46% |
The price of return: risk
| Asset | Annual volatility | Worst drop |
|---|---|---|
| Houston real estate | 20% | -18% |
| Inflation (CPI) | 1% | -2% |
$10,000 in each, since 2013
| Asset | Value today |
|---|---|
| Houston real estate | $21,117 |
| Inflation (CPI) | $14,553 |
Frequently asked questions
Did Houston real estate beat inflation?
Over the period, Houston real estate returned 111% while U.S. consumer prices rose 46%. The gap is what the asset earned beyond simply keeping pace with the dollar.
Does this account for the dollar losing value?
Yes. The inflation line is U.S. CPI, the measure of how much purchasing power the dollar lost over the same period. Returns above that line are gains in real terms.
Does a higher return mean a better investment?
Not on its own. A higher return came with higher risk here — the volatility and the largest drop on this page show how much the value swung along the way.
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Descriptive, educational content computed from official public data. Not investment advice. Past performance does not guarantee future results.