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Houston Multifamily Demand Pulls Back

Rents and absorption scaled back.

By Anthony Russo | January 21, 2025 at 09:13 PM

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.”

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