- Houston set a record for single-family rental inventory in June, with 4,590 leases signed—a 5.2% year-over-year increase.
- Older Class B, C, and D apartment buildings are losing tenants, shedding over 600 units in the past year.
- Class A apartments remain strong, but single-family homes are drawing more renters away from aging multifamily units.
A Tale of Two Markets
Houston has long been viewed as Texas’ most stable multifamily market, per The Real Deal. But that status is being tested. New data from the Houston Association of Realtors (HAR) shows that single-family rentals are gaining momentum, while older apartments are slipping. Between January and June, nearly 24,000 single-family leases were signed—a 5% jump from the same period last year.
June Surge in Inventory
Rental inventory reached a record high in June. New listings for single-family homes rose 12.7% year over year, hitting 7,117. Leasing activity followed suit. Last month, 4,590 leases were signed, up 5.2% compared to June 2024.
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Multifamily Market Splits
Houston has avoided the rent declines seen in Dallas and Austin. That’s largely due to slower multifamily development. Still, not all apartments are faring well. Class A units have stayed in demand, absorbing over 19,000 units in the past year. But Class B, C, and D buildings lost 624 units and saw falling occupancy.
Newer Properties Win Investment
Developers have pulled back on new construction. Just 3,750 multifamily units opened in Q1—the lowest total since 2022. Investors are now focusing on newer buildings. Properties built after 2010 made up 40% of purchases in 2025, up from a previous focus on 1970s stock.
Why It Matters
The rise in single-family rental supply is shifting renter behavior. Many tenants who once settled for older apartments can now find homes that meet their needs. “There’s a lot more out there for them to pick from,” said HAR’s Troy Cothran.
What’s Next
As apartment deliveries slow and single-family options grow, aging multifamily stock will face more pressure. Class A units may remain strong, but lower-tier properties could see more vacancies without upgrades or competitive pricing.
