Houston, TX Multifamily Market Report | Cushman & Wakefield | Q1 2026

Market Overview

‍Houston's multifamily market entered Q1 2026 with improving balance, supported by moderating supply pressure and early signs of demand reacceleration across key submarkets. Total inventory reached 692,014 units following 4,450 deliveries during the quarter, while units under construction declined to 12,683, down 20.2% year-over-year and placing Houston at one of its lowest construction levels since before 2020. Net absorption totaled 1,329 units, reversing the modest contraction recorded in the prior quarter, led by Sugar Land/Missouri City (600 units), Bear Creek/Copperfield (299 units), and Neartown/River Oaks (239 units). Stabilized vacancy measured 11.5%, up 140 basis points year-over-year, though several submarkets outperformed significantly, including Heights (7.5%), Sugar Land/Missouri City (8.0%), Pearland (8.0%), and The Woodlands (8.3%). Effective rents averaged $1,348 per unit ($1.49 per square foot), down just 1.5% year-over-year, with suburban and workforce-oriented submarkets, including East End (+2.1%), Alief (+1.2%), and Southwest Houston (+0.8%), posting modest rent growth. On the investment side, 36 transactions totaling 8,644 units closed in Q1, with total sales volume reaching $138.7M, up significantly from $49.1M in Q1 2025, driven by heightened activity among private and middle-market capital targeting assets with early stabilization signals.

‍About Cushman & Wakefield

‍Cushman & Wakefield is a leading global commercial real estate services firm with approximately 53,000 employees across more than 350 offices in nearly 60 countries, reporting $10.3 billion in revenue in 2025. Their quarterly Houston Multifamily MarketBeat report tracks vacancy, absorption, effective rents, deliveries, and construction activity across 28 submarkets to help owners, developers, and investors assess market conditions and opportunities. To read the full report, click here.