Houston Multifamily Market Report

Houston apartment deliveries reach multi-year low. Over the past five years, Houston’s multifamily market has seen elevated new supply, with more than 15,000 units built per year. This trend peaked in 2024 with a record-breaking 25,000 rooms brought online. Elevated borrowing and insurance costs, however, are expected to cut openings by over 50 percent in 2025. Deliveries in the CBD dropped to just 100 units in the first quarter, and key submarkets like Sugar Land-Stafford and River Oaks saw no openings of note. Still, lingering supply from recent deliveries pushed vacancy up by 10 basis points in the first quarter, creating short-term challenges despite the market’s solid long-run growth outlook.