Houston Multifamily Market Report
Market Overview
Houston has maintained its strong standing in employment and population growth during 2024. Population metrics have increased by 17.2% throughout the past decade, which is a large increase compared to the national performance metric of 5.5%. Healthcare has a large employment presence here that will continue to grow. Texas Medical Center is currently working on a TMC3 project that will establish Houston’s strong presence in healthcare nationally. This project will bring 26,000 new jobs here, and it will generate $5.2 billion to the metro’s economy.
Houston Multifamily By the Numbers
- Vacancy rate: 11.1%
- Rent growth: 0.6%
- Delivered units: 23,965
- Absorbed units: 16,221
- Sales volume: $1.1B
Multifamily Market Performance
Vacancy in Houston has dropped from peak levels seen earlier this year, and it is now at 11.1%. This drop can be attributed to the absorption of more than 10,000 units during the first half. The Bear Creek/Copperfield and Cinco Ranch submarkets have noted the strongest absorption figures in Houston. The current average asking rent of $1,340/month is also attractive to residents as it is lower than other major Texas metros.
After seeing a large increase in supply additions, construction levels in Houston are cooling down. Most of this construction activity is targeting the Class A segment, and the metro’s urban area and suburban markets are undergoing the most construction. Bear Creek/Copperfield, Northwest Houston, and Sugar Land/Missouri City received the most construction in the suburbs, as the growing population seeks housing here. During Q1 2024, sales volume was over $300 million—marking the highest first quarter sales figure in two years. The majority of sales were for Class A properties, which made up 17% of trades in the first quarter.
