Houston Multifamily Market Report | Q4 2024
Crissy Nolen
Chief Marketing Officer at Colliers in Houston | Driving Growth, Maximizing ROI
"A focus on Class A product was the main driver for multifamily tenants, garnering a 25% increase in absorption in 2024 compared to the previous year.
Construction activity has decreased by over 40% during the year while occupancy levels for multifamily projects remained comparable or better than the previous year, allowing tenants to absorb the heavy supply of new product brought to the market over the past 48 months."
Danny Rice | President
Key Takeaways
Key Stats
Houston Highlights
Demand for multifamily housing in Houston was strong throughout 2024 but contracted 26.1% in the fourth quarter amid weak seasonal demand. A total of 18,768 units were absorbed by the market over the trailing four quarters with the majority concentrated in Class A product, which saw a 25.6% increase in annual absorption from 2023. The average monthly effective rent for multifamily units finished Q4 at $1,274, which represented a slight decline quarter over quarter but a 0.7% increase year over year. Occupancy rose marginally during the last three consecutive quarters, reaching 88.6%, reflecting a 10-basis-point increase compared to the same period last year. Delivered units plunged 58.1% from the previous quarter to 2,066 units, while the construction pipeline also dropped 20.6% from Q3 and declined 41.0% from a year ago.
Market Indicators