Metro Reports Multifamily Market News

Houston Multifamily Market Report (Fall 2021)

Houston Multifamily Market Report Fall 2021
Image by PorqueNoStudios/

Deliveries Accelerate, Transactions Skyrocket

Houston’s rental market has seen especially meaningful progress in 2021, with rising oil prices and improving overall economic conditions supporting multifamily fundamentals. On a trailing three-month basis through October, Houston rents were up by 1.3% to $1,231. On a year-over-year basis, the average was up 10.3%.

Unemployment slid to 6.1% in August, while September preliminary data pointed to a 60-basis-point improvement. Houston added 139,400 jobs during the 12 months ending in August, with the greatest increases occurring in the hospitality sector, which is experiencing a nationwide recovery. Meanwhile, although the metro’s economic base is still tied to the oil industry, Houston has made strides to diversify its economy. The city’s business-friendly environment and expanding talent pool have prompted Hewlett Packard Enterprise to relocate its global headquarters from San Jose, Calif., to the Houston region starting early next year. Great Lakes Dredge & Dock Co., one of the largest providers of dredging services, is also moving its corporate office from Chicago.

Despite the booms and busts of the past decade, investors and developers are confident in the metro’s longer-term potential. A record $6.8 billion in multifamily assets changed hands across the greater Houston area in the first 10 months of the year, and 15,696 units came online.

Read the full Matrix Multifamily Houston Report-Fall 2021

About the author

Laura Calugar

Laura Calugar is a senior associate editor with Commercial Property Executive and Multi-Housing News. She has a 10-year background in broadcast media and joined the CPE-MHN team in 2016.

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