Houston, TX Multifamily Market Report | Newmark | Q4 2025

Market Overview

Houston's multifamily market gained meaningful ground in 2025. Occupancy reached 90.4%, the highest mark since June 2022, driven by Class A absorption of 16,364 units, exceeding the 10-year average for that asset class. New supply dropped to 9,806 units, less than half the prior-year pace, and 14,887 units remain under construction. Effective rents averaged $1,258, with a -1.5% growth rate reflecting the tail end of prior supply pressure. Transaction volume reached $4.153 billion, up 4.0% year over year, with deal count rising 14.8%. Moody's projects Houston to rank first nationally in population, employment, and net migration growth from 2026 to 2030, and a widening $2,256 monthly gap between ownership costs and average rents keeps the renter demand case structurally intact.

About Newmark

Newmark is a full-service commercial real estate advisory and capital markets firm serving investors, owners, and occupiers across major U.S. and global markets. Their Houston Q4 2025 multifamily market report covers occupancy, absorption, rent trends, cap rates, and transaction volume to help investors assess market conditions and refine investment timing. To read the full report, click here.