MARKET SNAPSHOT

HOUSTON Q1 2026

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AVERAGE RENT

$1,343 Q1 2026

OCCUPANCY RATE

88.4% Q1 2026

NET ABSORPTION

6,430 T4Q

ANNUAL RENT CHANGE

-1.5% Q1 2026

ANNUAL OCCUPANCY CHANGE

-150 BPS

COMPLETIONS

14,126 T4Q

KEY TAKEAWAYS

Houston absorbed 1,234 units in Q1 2026, reversing Q4 2025's 657-unit decline, though trailing 12-month absorption of 6,430 units continues to lag the 14,126 units delivered, sustaining lease-up competition across the metro.

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The under-construction pipeline has contracted 30% over the past year to 12,222 units (1.6% of inventory), with trailing 12-month starts of 8,931 units suggesting a more measured forward supply cadence.

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Average effective rents of $1,343 reflect a 1.5% annual decline driven by an outsized delivery cycle, dropping occupancy 150bps over the past year to 88.4%.

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MARKET OUTLOOK

Houston's supply cycle is turning. The under-construction pipeline has contracted dramatically from its 2023 peak, and trailing completions are declining at a pace that point to...

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