Q225 | Multifamily Market Report | Houston, TX

Market Overview

In Q2 2025, Houston’s multifamily sector showed signs of stabilization. Net absorption reached 5,200 units while only 2,700 units were delivered, narrowing the supply surplus. Asking rents slipped by 0.4 percent—marking the first negative annual growth in 15 years—as vacancy climbed to 11.2 percent. Sales activity remained healthy with $358 million in volume and a market price per unit of approximately $149,000, while cap rates hovered around 6.5 percent.

About Matthews

Matthews Real Estate Advisors is a boutique commercial real estate firm providing research-driven insights and advisory services. Their quarterly multifamily market reports deliver granular data—covering absorption, rents, sales, and supply metrics—to help investors and developers track trends and make informed strategic decisions.