The Greater Houston area rental market continues to see increases in the number of listings and average leasing prices annually, as higher mortgage rates mean people are not buying homes, according to the October 2023 Rental Market Update from the Houston Association of Realtors released on Nov. 15.

By the numbers

“Homes for lease remain a big draw for consumers who are unwilling to make a purchase with mortgage rates sitting where they are right now,” HAR Chair Cathy Trevino said in a news release.

As of Nov. 9, 30-year fixed mortgage rates are 7.5% and 15-year fixed rates are 6.8%, according to the Federal Reserve Economic Data.

According to the Nov. 15 HAR report:

• Single-family home rentals increased 4.3% year-over-year
• Average lease price for single-family homes increased by 2.2% year-over-year
• New listings rentals increased 9.8% year-over-year

Another viewpoint

The townhome and condominium rental market did not increase as much as the single-family home market, with the exception of new listings.

• Leases of townhomes and condominiums remained flat with a 0% change year-over-year.
• The average lease price for these properties increased by 0.7% year-over-year.
• New listings increased by 9.1% year-over-year.

What they’re saying

“Despite the easing of home prices and growth in inventory in recent months, some consumers may continue to hold off purchasing until they see mortgage rates come down,” Trevino said.