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Market Report

Houston Multifamily Market

3Q 2023

Houston Improving in Relation to Other Texas
Markets, but Rising Expenses Pose Challenges

Local multifamily sector is proving sturdier. Houston was the only major Texas market to register a vacancy decline between the first and second quarters of this year. Net absorption of nearly 5,800 units year-to-date through June was also the largest tally in the state, slightly edging out Dallas-Fort Worth and significantly outpacing the two central Texas metros. This foreshadows expectations for the second half of 2023. Sustained demand and relatively mild construction allow Houston to tie Austin’s vacancy rate and come within 20 basis points of Dallas-Fort Worth’s state-leading metric by year-end. This is notable as Houston has never had a rate within 80 basis points of either market at the close of a year going back to 2018. 

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