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Most likely, though, Houston Street is named for a congressman from Georgia, William Houstoun, who married Mary Bayard: her father Nicholas owned the land in Greenwich Village through which he cut the street in the early 1800s, naming it for his son-in-law. Houstoun spelled his name with that extra 'u' and likely pronounced his name Howstoon or Howston. Over time the extra letter fell out while the pronunciation remained.The picture shows two old images from Old Houston Street.
The attached pdf file comes from a Times article from early 2005 when discussions of the avenues' transformation was taking place.
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