The Villans look destined for relegation and were beaten 2-0 by West Ham United on Tuesday.
Villa were expected to be busy last month, with it widely believed Remi Garde would bring in a number of players to try and boost their hopes of escaping relegation this season.
It did not turn out that way though, as Villa struggled to convince players to join them and as a result failed to bring anyone to the club.
And Houghton believes that says the club has accepted that they are going down this season.
"It probably says we're going down, it's as simple as that and as clear as that," he told BBC Sport.
"To have brought no-one in is quite remarkable in many respects, this is probably the best window for the teams at the bottom because they're the ones that panic the most.
"The amount of money that's coming into the Premier League next season is huge and for a club like Villa not to be in it next season would be unbelievable."
While it was surprising that Villa didn’t sign players to try and avoid relegation, it was more shocking that they didn’t at least try to plan for next season either.
With it looking like they have accepted relegation as a certainty, they could have used the January transfer window as a means of planning for life in the Championship.
That would have been a wise move as it would allow them plenty of time to gel the squad and try to make a quick return to the Premier League next season.