Houston Multifamily Market Report
High-Quality Suburban Rentals Attracting Residents Priced Out of Homeownership
Affordability gap doubles that of the U.S. The metro’s median single-family home price surged 19 percent during the past year as migration to the market accelerated. This widened Houston’s affordability gap, or the difference between an average rental rate and a mortgage payment on a median priced home. The margin is now $890 per month in the metro, compared with the U.S. average of $451 per month. Upper-tier apartments serve as an appealing alternative to homeownership, while also offering greater flexibility and lower maintenance. Suburbs like the Woodlands and Katy have been top choices for residents seeking rentals higher on the quality spectrum. Class A vacancy fell by at least 250 basis points and Class B availability decreased by 200 basis points or more in both of these submarkets over the past year.