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Category: Multifamily Tags: Houston, Houston Texas, market report, texas, TX

Q1 Houston Multifamily Market Report

Market Overview

Houston remains one of the top-performing employment markets in the country, with an addition of 70,000 new jobs in 2023. The labor market has now surpassed pre-pandemic levels by over 210,000 jobs, representing a nearly 7% increase. The Houston metro area is home to approximately 7.5 million people, ranking it as the fifth-largest in the U.S. Its appeal lies in factors such as a youthful population, affordability, favorable climate, low tax rates, business-friendly atmosphere, diversity, and rich cultural offerings, all of which consistently draw in new residents. As of Q1 2024, there has been a resurgence of demand in Houston’s multifamily market. However, the influx of recent supply is expected to limit rent growth for the duration of the year.


Houston By The Numbers | Past 12 Months | Source: CoStar Group

  • Vacancy Rate: 11.3%
  • Rent Growth: 0.4%
  • Units Delivered: 24,687
  • Units Absorbed: 9,616
  • Sales Volume: $700M


Market Performance

The supply of multifamily units has exceeded demand for the last nine quarters. Consequently, vacancies have increased from a low of 7.0% in Q3 2021 to 11.3% as of Q1 2024. However, there is a positive sign as vacancies seem to have reached their highest point and are expected to decrease. The remainder of 2024 is expected to see a decrease in construction activity, with only 14,000 completions projected, marking a 40% decrease from the previous year. This reduction in construction could lead to lower vacancy rates and faster growth in rental prices in 2025. Despite experiencing significant fluctuations in recent years, the fundamental factors that support Houston’s multifamily market in the long term remain strong: impressive population growth, a diversified economy, and average rents of $1,330 per month, which are still lower than national averages and those of competing cities in the Sunbelt like Austin, Atlanta, and Miami. Stakeholders in Houston’s multifamily market maintain a positive outlook for its future.


Elevated interest rates, stricter lending criteria, and significant gaps between buyer and seller price expectations still influence the sales dynamics in Houston’s multifamily sector. Local buyers are now anticipating 10-15% discounts compared to prices in early 2022.

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