Houston Multifamily Market Report | Q2 2025

HOUSTON - July 30, 2025 - PRLog -- "Houston's multifamily market remained active in Q2, with occupancy climbing to 89.0% and Class A product driving nearly 80% of total absorption.

While new deliveries moderated, average sales price per unit increased to its highest level in over two years, signaling growing investor confidence."

Danny Rice | President

Key Takeaways

• Occupancy climbs
• Rents remain stable
• Overall absorption slows
• Deliveries decrease

Houston Highlights

Houston's multifamily market absorbed 5,521 units in Q2 2025, a 38.6% increase from the prior quarter, but a 34.3% decrease year over year. Overall occupancy improved to 89.0%, which is up 50 basis points (bps) from the prior quarter and 70 bps from a year ago. Class A product continues to bolster overall market performance, accounting for 79.4% of overall absorption in the second quarter and the only segment to achieve positive quarter-over-quarter rent growth. Class A occupancy is 84.7%, up from 81.4% last year, while Class A rents rose 0.5% on the quarter to $1,744, but a 0.9% decline from last year. Overall average effective monthly rent remains steady at $1,277, a nominal change both quarter over quarter and year over year. Deliveries slowed to 2,275 units in Q2 2025 from 3,359 units in the prior period and from 7,757 units a year ago. Construction activity and overall absorption remain concentrated in the Northwest submarket with 3,599 units currently underway and 2,586 units absorbed during the quarter.

Read the full report at colliers.com/houstonresearch