Houston Multifamily Market Report | Q1 2025

Market Overview

Houston’s multifamily sector held steady in Q1 2025 with occupancy unchanged at 88.5%, supported by a near match between absorption (3,595 units) and new deliveries (3,315 units). Class A product saw the most momentum, with occupancy up 250 basis points year-over-year, reaching 83.9%. Effective rents across all classes remained stable, with a market average of $1,276 per month. Notably, development activity slowed: only 11,000 units are currently under construction citywide, with the Northwest submarket accounting for 40% of that total. While overall sales volume declined to $460 million this quarter, average price per unit rose 21% year-over-year, signaling selective investor confidence in core submarkets.

About Colliers

Colliers is a global commercial real estate leader operating in over 70 countries, offering services in investment sales, leasing, property management, engineering, and real asset strategy. With $4.8 billion in annual revenue and more than 23,000 professionals worldwide, Colliers delivers tailored solutions that help clients accelerate the success of their properties and portfolios. The firm’s multifamily research provides in-depth insights at both national and local levels—like Houston—combining economic context, occupancy trends, and capital markets analysis to support strategic real estate decisions.

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