Houston Multifamily Real Estate Market Updates

Market Overview

Houston’s multifamily market closed Q1 2025 on a more stable note, with signs of moderation across key metrics. Vacancy rose modestly to 9.6%, up 10 basis points year-over-year, while annual rent growth slowed to 0.8%. Effective rents averaged $1,228 per unit, and new deliveries totaled 3,900 units for the quarter—bringing the trailing 12-month total to nearly 28,000. Although elevated supply has kept fundamentals in check, demand remains resilient, especially in affordable and workforce housing. The market is expected to benefit from reduced construction starts and sustained population growth, supporting a more balanced environment heading into the second half of the year.

About Newmark

Newmark is a global commercial real estate advisory firm offering a comprehensive suite of services including capital markets, property management, and valuation. Known for its robust data analytics and investor-focused insights, Newmark regularly publishes multifamily market reports that examine local and national trends. Their research incorporates both real-time leasing activity and forward-looking capital market indicators, helping investors and operators navigate market cycles. In metros like Houston, Newmark’s coverage delivers critical perspectives on absorption trends, rent dynamics, and the shifting construction pipeline.

‍