May 30, 2024


Mad about real estate

Houston Apartment Overview

Despite having the lowest overall occupancy out of the four major Texas markets, the Houston area multifamily sector performed well during May, posting all positive key metrics. Although monthly absorption figures posted positive, in comparison to April’s metrics, the sector posted close to half the amount of absorbed units. Average rents per unit showed an increase across all properties with Class A properties increasing $0.85 and Class D properties increasing $4.20. While average rents per square foot recorded an increase of only $0.001 and $0.002, respectively. With over 60{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} of the construction pipeline currently pre-leasing, there could be a slight decline in rental rates among Class A and B properties, but expect the next month to continue the positive trend in key metrics.

Houston apartment market occupancy increased 0.15 points in May to 86.23{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4}. Occupancy is down 1.24 points over the last year. Average rents per square foot increased by $0.002 per square foot and are up $0.007 per square foot since May 2009. Average rent per unit increased $0.93 in May to $760.53, which represents an annual increase of $8.35. Monthly absorption was positive 925 units, while annual absorption (rolling twelve months) totals positive 3,319 units.

Houston Apartment Market
Key Metrics



Monthly Change

+ 0.15{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4}

Annual Change

– 1.24{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4}

Rent / Unit


Monthly Change

+ $0.930

Annual Change

+ $8.35

Rent / SF


Monthly Change

+ $0.002

Annual Change

+ $0.007

Monthly Absorption

+ 925

Annual Absorption

+ 3,319

Units U/C


Units Planned


The Market Research and Consulting division of O’Connor & Associates provides information necessary to make decision to commercial real estate professionals. Occupancy and Rental Data, ownership and management information are routinely gathered for four major land uses – multifamily, office, retail and industrial. This information allows investors to compare competitive properties, facilitate business decisions and track market and submarket performance. In addition the data is useful to brokers who for example continually monitor Houston retail space leasing, Houston office space leasing, Houston industrial space leasing, Houston apartments, Dallas apartments, Ft. Worth apartments, Austin apartments, and San Antonio apartments.

This capacity to research, analyze and interpret market trends and the impact of specific transactions is a major reason for why developers and acquisition experts rely on O’Connor & Associates for market research, market studies, feasibility studies, rent studies, tax credit studies, project design guidance, property performance evaluation and lease audits. O’Connor & Associates is an acknowledged source of trends in real estate investing and market activity.