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The multifamily market in metro Houston was a mixed picture in November ’24, with flat occupancy, increasing rents, and declining construction compared to last year. Rents increased, especially in the northeast, as the number of occupied Class A units grew while other less expensive classes shrank.

Apartment occupancy remained flat at 88.6 percent in November ’24, according to MRI Apartment Data, virtually unchanged from 88.7 percent in November ’23. Average rents increased slightly overall, even as they fell for each property class individually, with a growing share of renters moving into Class A properties and paying higher Class A rents. Even though Class A occupancy has increased by 1.1 percent points since November ’23, it has absorbed 20,366 units over the period while all other classes shed occupied units. 

Construction continues to taper off with only 14,964 new units underway as of early December. An additional 38,801 units across 125 properties are in the proposal stage of development.   

The northeast region of metro Houston played an outsize role in rising rental prices, with its monthly rents increasing by 3.2 percent (or 35 dollars) on average since November ’23. All other regions had only moderate changes of 1.1 percent or less during that time. But, even with its larger price increase, the northeast remains the most affordable region for renters.

Houston is the only major metro area in Texas where average apartment rents have risen since November ’23. Rents declined moderately in Dallas/Ft. Worth and San Antonio and fell sharply in Austin where overbuilding has caused a glut of new units to hit the market.

Prepared by Greater Houston Partnership Research Department

Patrick Jankowski, CERP
Chief Economist
Senior Vice President, Research
[email protected]

Colin Baker
Manager of Economic Research
[email protected]