Rental homes in Greater Houston rise amid affordability concerns, interest rates

Demand for rental homes in the Greater Houston area increased in July due to concerns about affordability and high interest rates, according to a July Rental Market Update from the Houston Association of Realtors.

The details

According to the report, these trends highlight the growth of the rental market in the Greater Houston area:

• The average lease price for single-family homes rose by 3% year over year to reach $2,363.
• A total of 4,396 leases of single-family homes were signed in July 2023, compared to 3,693 leases in July 2022, increasing by 19% year over year
• This leasing volume represents the highest ever recorded in the month for single-family homes, with new listings of single-family rentals on the market rising 11.6% in July year over year.

Rentals of townhomes and condominiums also showed growth in July:

• Leases for townhomes and condominium properties increased by 3.9% year over year.
• The average lease price reached $1,963, reflecting a 2% rise from the previous month's lease price.

What they’re saying

Homebuyers are adopting a wait-and-see approach and choosing leased properties due to affordability and interest rate concerns, HAR Chair Cathy Trevino said in the report.

“A rental home gives consumers the look and feel of homeownership without the mortgage obligation, and more importantly, it provides them with critical housing until they consider market conditions suitable to buy,” Trevino said.