While Houston's multifamily market is coming off a relatively strong year, some key fundamentals took a step back in the final three months, according to Collier's latest report analyzing the performance of the sector and the city.

In the fourth quarter, 3,585 units were absorbed. That's up from the 3,048 from 12 months ago, but down from the 4,814 in the third quarter. The increase in demand for 2024 as a whole was driven by Class A properties, where absorption levels surged 25 percent from 2023. Colliers attributed the fourth quarter absorption decline to "weak seasonal demand."

It was a similar story for rent prices, which dropped to $1,274 from $1,285 in the third quarter but rose 0.7 percent year-over-year. When it comes to average prices per multifamily unit, Houston's 2.8 percent growth outpaced Texas' one percent decline in the fourth quarter.