Houston Multifamily Market Report | Q2 2025
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HOUSTON - Txylo -- "Houston's multifamily market remained active in Q2, with occupancy climbing to 89.0% and Class A product driving nearly 80% of total absorption.

While new deliveries moderated, average sales price per unit increased to its highest level in over two years, signaling growing investor confidence."

Danny Rice | President

Key Takeaways

Occupancy climbs
Rents remain stable
Overall absorption slows
Deliveries decrease

Houston Highlights

Houston's multifamily market absorbed 5,521 units in Q2 2025, a 38.6% increase from the prior quarter, but a 34.3% decrease year over year. Overall occupancy improved to 89.0%, which is up 50 basis points (bps) from the prior quarter and 70 bps from a year ago. Class A product continues to bolster overall market performance, accounting for 79.4% of overall absorption in the second quarter and the only segment to achieve positive quarter-over-quarter rent growth. Class A occupancy is 84.7%, up from 81.4% last year, while Class A rents rose 0.5% on the quarter to $1,744, but a 0.9% decline from last year. Overall average effective monthly rent remains steady at $1,277, a nominal change both quarter over quarter and year over year. Deliveries slowed to 2,275 units in Q2 2025 from 3,359 units in the prior period and from 7,757 units a year ago. Construction activity and overall absorption remain concentrated in the Northwest submarket with 3,599 units currently underway and 2,586 units absorbed during the quarter.

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