Supply Cools, But Fundamentals Slip
Houston multifamily started 2026 on a softer note, registering declined in asking rents and occupancy, according to the latest Houston multifamily market report. The average advertised asking rent fell 1.2% year-over-year, to $1,353 in January, while the U.S. rate rose 0.2%, to $1,741. Meanwhile, the occupancy rate in stabilized properties dropped 50 basis points last year, to 92.2%. Employment growth held steady, at 1.1% through September, 30 basis points above the U.S. rate, as reported in the national multifamily report. Meanwhile, unemployment stood at 4.2% at the end of last year, just below Texas (4.3%) and the U.S. (4.4%). Houston added 30,700 net jobs in the 12 months ending in September, sustained by gains in seven sectors, led by education and health services (15,100 jobs) and government (11,100).
Three sectors shed 16,300 jobs combined, driven by professional and business services (-13,700). Major demand catalysts include the George R. Brown Convention District expansion and the Terminal B overhaul at the George Bush Intercontinental Airport, supporting downtown hospitality and airport-area logistics.
Deliveries moderated to 14,563 units in 2025, with another 24,782 units underway as of January. Meanwhile, construction starts rose 37.7% last year, to 13,203 units. Investment volume increased 32.2% in 2025, to $3.4 billion, while the average price per unit stood virtually flat. Houston apartments traded at an average of $136,423 in 2025, well below the $203,810 U.S. figure.
Read the full Yardi Matrix Houston Multifamily Market Report: March 2026
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