Supply, Demand In Balance
Houston’s multifamily market kicked off 2025 with steady fundamentals, albeit with some nuances across key markers. A balance between supply and demand kept average advertised asking rents flat on a three-month basis through January, at $1,364, having recovered after three months of contractions. Should market conditions hold, Yardi Matrix expects year-over-year rent growth to clock in at 2.2% for 2025. The metro’s average overall occupancy rate in stabilized properties remained flat year-over-year through January, at 92.6%.
Employment growth in Houston stood at 2.1% year-over-year through November, 80 basis points above the U.S. figure, as reported in the national multifamily report. The metro added 62,500 net jobs over the 12-month period ending in November, with mining, logging and construction leading gains (17,300 positions), followed by education and health services (12,600). Unemployment stood at 4.1% as of December, mirroring the national figure, according to preliminary data from the Bureau of Labor Statistics. Oneok and MPLX are investing $1.8 billion to build a 400,000-barrel-per-day LPG export terminal in Texas City, Texas, which will benefit Houston’s main industry.
Developers added 20,355 units to the market last year. Supply dynamics remained healthy, as this total surpassed the average of 17,000 units added annually from 2017 to 2024.
Read the full Yardi Matrix Houston Multifamily Market Report: March 2025
Add Comment