Houston, TX Multifamily Market Report | Lee & Associates | Q1 2026

Market Overview

Houston's multifamily market rebounded in Q1 2026 with positive absorption of 892 units after a softer Q4 2025 that saw negative absorption of 726 units, reflecting typical seasonality and a slowdown in deliveries. Vacancy increased modestly to 12.5% but remained within a stable historical range, while asking rents held essentially flat year-over-year at $1,366 per unit. Cap rates compressed to around 8.73% even as average sale pricing per unit declined sharply to $58,569 from $207,431 the prior quarter, and despite some near-term softening in fundamentals, limited new supply (down to 14,886 units under construction) and improving capital markets continue to support Houston's position as a durable long-term investment market.

About Lee & Associates

Lee & Associates is a nationwide commercial real estate brokerage serving investors, owners, and occupiers across property types. Their Q1 2026 Houston multifamily market report tracks net absorption, vacancy, asking rents, sale pricing, and top transactions to help investors and owners assess current market conditions. To read the full report, click here.