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Market Report

Houston Multifamily Market

2024 Investment Forecast

Regional Living Cost Advantages and High-Wage
Job Opportunities Sustain Migration

Houston will remain a top relocation destination. Now years in the rearview, the circumstances of the pandemic accelerated migration to Sun Belt metros due to cost-of-living and quality-of-life advantages, fueling the addition of 165,100 new households in Houston between 2020-2023. Correlating with that influx, Class A rent growth was exceptional prior to last year’s moderation, resulting in an aggregate 20 percent surge in that apartment segment during the span. Some other Sun Belt metros had even larger hikes, altering the spectrum of relative living costs. Houston’s mean effective Class A apartment rent trailed the equivalent average of major Sun Belt markets by about $150 per month in 2020. Entering this year, that relative monthly discount had doubled to roughly $300. This positions Houston to sustain migration long-term, especially if an economic slowdown leads renters seeking higher-quality apartments to more costfriendly markets in the region. Further enhancing relocating households’ considerations, hiring in high-wage industries has been noteworthy, reflected in median household income growth. Houston ranked first in Texas for that metric last year and is projected to do the same in 2024. Relative luxury rental affordability, alongside attractive wage prospects, should continue to stoke migration and diverse Class A/B apartment demand.

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