Houston Apartment Rents Continue To Grow While Other Texas Metros Falter

Out of the four largest Texas metropolitan areas, Houston is the only one to see positive growth of average apartment rent over the past year, according to a new report.

Houston’s multifamily rental rate grew a modest 1.3% over the last 12 months, a Market Line Report from MRI Software’s ApartmentData shows. But the Dallas-Fort Worth area’s rental rate decreased by 0.9%, San Antonio’s decreased by 1.2% and Austin’s decreased by 3.9%, the report indicates.

Houston’s average rent for an apartment per month is still among the lowest of the major Texas metros at $1,272. San Antonio’s is slightly lower at $1,211, while DFW’s average is $1,504 and Austin’s is $1,625.

Houston’s apartment market continues to grow, with 3,861 units absorbed over the past year. More than 22,000 units are under construction and another 31,719 are proposed for construction, representing 187 communities combined. About 73 communities recently opened, the report states.

Almost all of the top five “hottest” Texas growth spots are suburban markets on the south side of Houston, according to the report. The hottest submarket over the past quarter was Friendswood/Pearland East, based on the best combination of rental rate growth and absorption. That is followed by Highway 288 South/Pearland, Clear Lake/Webster/League City, Conroe North/Montgomery and Sugar Land/Stafford/Sienna.

Houston’s average apartment occupancy is 89.9%, which is in line with San Antonio and Austin. Dallas-Fort Worth has a higher occupancy at 91.6%.

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