The Houston rental market is on fire, showing solid growth with strong demand and a robust supply of rental properties. This spring, the market has heated up, offering excellent opportunities for both renters and landlords.
Key Highlights:
- The number of leased listings in April 2024 jumped 3.8% year-over-year to 3,762, according to the Houston Association of Realtors (HAR).
- Average rent prices increased by 3.1% year-over-year to $2,285, reflecting ongoing demand for rental homes.
- New listings surged 27.4% in April compared to the same period last year, giving renters more options.
- Days on Market decreased slightly to 35 days, indicating faster lease times.
HAR Chair Thomas Mouton from Century 21 Exclusive Properties noted, “The Houston rental market continues to thrive in a unique balancing act. While strong demand persists, the influx of new listings is providing renters with more options.”
Record Low Move-Outs to Home Purchases: Recent data from rental economist Jay Parson reveals that move-outs to home purchases are at record lows. Here are some notable quotes from REIT executives:
- MAA’s Tim Argo: “The 12.9% of move-outs in the first quarter due to a resident buying a home was the lowest ever for MAA.”
- Camden’s Ric Campo: “9.4% of our move-outs in the first quarter were attributed to residents buying a home, the lowest in our history.”
- American Homes 4 Rent’s Bryan Smith: “Q1 represented our lowest move-out-to-buy that we’ve seen at about 27%. Historically, it was in the mid-30s.”
- Invitation Homes’ Charles Young: “We see people moving out to buy homes as low as it’s ever been in the last few years.”
- Equity Residential’s Mark Parrell: “The percentage of our residents leaving to buy homes was 7.8%, continuing all-time lows.”
- AvalonBay’s Sean Breslin: “During Q1, only 7% of our residents moved out to purchase a home, down from a historic 12%-13%.”
- Essex’s Angela Kleiman: “The percentage of our turnover attributed to purchasing a home has fallen from around 12% historically to 5% today.”
Conclusion: The high mortgage rates and sticky home prices are keeping potential homebuyers in the rental market. This trend benefits single-family rentals (SFRs) and multifamily properties, albeit to a lesser degree.
Don’t miss out on the booming Houston rental market this year. Reach out to secure your ideal rental property today!
