Houston Multifamily Figures - Q1 2025

— The Houston multifamily market closed out the first quarter of 2025 with more occupancy growth. Occupancy remains at nearly 94%, its highest rate since 2022, driven by outperformance in submarkets like Memorial and West University/Medical Center. 

—  Continuing the ‘flight to quality’ trend, the projects with the highest occupancy and rental rates are those built after 2010. 

—  Average rents remained at $1,367 per month, though submarkets like Galleria/Uptown, and Downtown/Montrose/River Oaks saw YoY growth in excess of 2.3%. North Central Houston saw a YoY increase of 4.2%.

— Encouragingly for the stabilization of occupancy and rents in the multifamily market, completions saw a 77% slowdown in Q1; this quarter saw the lowest number of deliveries since before COVID. This was expected due to the diminishment of the construction pipeline in recent quarters.

— Though investment volumes fell in Q1 due to challenging financing conditions, nearly a half billion in product traded hands, with the majority of sales being seen in 2010+ vintage and 2000s vintage properties.