Houston Multifamily Report – March 2024

The market was one of the few to see starts jump, even as the U.S. pipeline moderated.

Houston rent evolution, click to enlarge
Houston rent evolution, click to enlarge

Houston multifamily fundamentals entered 2024 on a steady path. Rent growth outpaced the nation and remained flat on a trailing three-month basis, while the U.S. rate contracted 0.2 percent. Year-over-year, Houston rents rose 0.7 percent as of January, to $1,351, outperforming the U.S. average, which climbed 0.5 percent, to $1,710. Meanwhile, the metro’s occupancy rate slid 50 basis points in the 12 months ending in January, to 92.9 percent.

Houston sales volume and number of properties sold, click to enlarge
Houston sales volume and number of properties sold, click to enlarge

Unemployment clocked in at 3.8 percent in December, slightly behind the 3.7 percent U.S. figure and just ahead of the 3.9 percent state rate. Houston’s jobless rate was the highest among major Texas metros. In the 12 months ending in November 2023, employment expanded by 2.9 percent, or 77,800 net jobs, surpassing the 2.2 percent national rate. All sectors gained jobs, except for information, which remained flat, and mining, logging and construction, which lost 2,400 jobs. Education and health services led gains (23,400 jobs), followed by trade, transportation and utilities (18,300 jobs) and professional and business services (10,500 jobs).

Houston. Photo by gchapel/iStockphoto.com
Houston. Photo by gchapel/iStockphoto.com

Developers completed 1,201 units in January and had another 33,211 underway. Yearly deliveries moderated further in 2023. However, new construction starts jumped nearly 20 percent year-over-year, even as the national pipeline slowed. Investment was tepid, with only $119 million in assets trading in January. However, the price per unit rose to $158,865 for the limited sample size.

Read the full Yardi Matrix report.

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