Market Snapshot Houston Q1 2025

Market Overview

Houston’s multifamily market began 2025 with a surge in demand, marking the first quarter since 2021 where net absorption (3,885 units) outpaced new supply. Occupancy stabilized at 90.2%, and rent growth, while modest at 0.6%, outperformed other major Texas metros. Construction has slowed significantly, with just 11,800 units underway—the lowest since 2018—which is expected to ease supply-side pressure in the coming quarters. Mid-tier and workforce housing continue to outperform luxury stock in both absorption and pricing resilience, especially in suburban areas like Liberty County and South Central Houston. Meanwhile, investor confidence is returning, with transaction volume reaching $2.57 billion and institutional buyers increasing their activity.

About MMG

MMG Real Estate Advisors is a multifamily-focused investment sales firm known for its hands-on approach and deep market knowledge across the U.S. The firm delivers research-backed insights that support investors, developers, and operators through each stage of the real estate cycle. MMG’s market reports combine proprietary analysis with third-party data sources—like CoStar and Yardi Matrix—to provide a holistic view of local trends in rent, occupancy, construction, and investment. Their Houston reports stand out for capturing both urban and suburban performance, making them a valuable resource for decision-makers seeking clarity in complex markets.

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