Houston's multifamily rental market declined in occupancy, dropping to 89% in January—a 2.5% decrease from 91.5% in 2021—according to a Feb. 6 news release from MRI ApartmentData.

The details

Houston's occupancy declined due to move-outs from older properties and a surplus of new supply, according to the release.

Challenges coming in 2024 include high construction levels and timing issues with new apartment construction amidst settling job growth, according to the release. Rent growth in Houston is expected to remain flat due to elevated concessions, or discounts provided by landlords to attract tenants, and oversupply.

The numbers

According to the release, Houston’s housing market experienced the following in January:
  • 27,252 new units opened
  • 21,998 units are under construction
  • 33,447 units are proposed for construction
  • Rent growth decreased from 2.2% in September to 0% in January.
  • Average rent price was $1,262 per month
A closer look

The hottest areas over the past three months, according to the release, were:
  • Bear Creek/Copperfield/Fairfield
  • Inwood/Highway 249
  • Northline
  • FM 1960 East/George Bush Intercontinental Airport
  • Friendswood/Pearland East