Monthly Update: Multifamily

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The multifamily market in metro Houston was stable in June ‘25, with modestly increasing occupancy, flat rents, and less construction compared to 12 months ago. Overall apartment occupancy ticked up from 88.3 to 89.0 percent between June ’24 and ‘25, according to MRI Apartment Data. Average rents fell by $2 per month during that time – a negligible change that is below the rate of inflation. Class A apartments are driving absorption, while all other classes are shedding occupied units.

Construction continues to taper off with only 9,321 new units underway as of early July. That is less than half of the 18,775 under construction in July ’24. But an additional 38,149 units are in the proposal stage of development across 123 properties.

While rents were stable for the metro region overall year-over-year, there was variation between communities. Rents fell in western and central areas, dropping by $18 per month in the Northwest, by $12 in the Southwest, and by $2 in Central Houston. However, rents increased in eastern regions, rising by $15 per month in the Southeast, and by $13 in the Northeast.

Across all major Texas markets, rents have fallen while occupancy has risen during the 12 months ending July 1st ’25. Houston had the highest occupancy rate at 89.0 percent while experiencing the shallowest drop in rents at 0.8 percent. Even though rents declined at a slower pace in Houston, they are still 9.8 percent lower than in Austin and 11.7 percent lower than in Dallas/Ft. Worth.

Prepared by Greater Houston Partnership Research Department

Economy  Real Estate