Construction Pipeline Shrinks to 11,756 Units
Groundbreakings have slowed sharply, which means far fewer new buildings competing for renters in 2027 and 2028.
Chart: Price Per Door, from Cushman & Wakefield data.
- 11,756 units under construction, down 20.8% in one quarter
- Down 36.4% from a year earlier
- Q2 deliveries of 3,772 units, down from 4,460 in Q1
- About 5,600 units expected to deliver in 2027
Houston’s construction pipeline shrank to 11,756 units at the end of the second quarter, according to Cushman & Wakefield. That is a 20.8% drop in a single quarter and 36.4% below a year earlier.
Why builders pulled back
New projects are harder to finance. Higher interest rates, tighter construction lending and elevated building costs make many developments pencil poorly, especially when existing properties can be bought for less than they cost to build.
What it means for deliveries
Deliveries are already falling. The metro added 3,772 new units in the second quarter, down from 4,460 in the first. Northmarq expects about 5,600 units to deliver in all of 2027, the lowest annual total in roughly 15 years. With permitting still light, supply is likely to stay low into 2028.
Some submarkets will see almost nothing new. In Bear Creek/Copperfield, which led the metro in second-quarter absorption, no deliveries are planned beyond early 2027, according to Northmarq.
The takeaway
Less new supply means existing buildings face less competition. Concessions should keep burning off, and rent growth tends to follow once occupancy holds.
Less new supply means fewer concessions and a clearer path to rent growth for existing properties.
Bear Creek/Copperfield and other submarkets with no planned deliveries after early 2027.
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Written by Price Per Door from public reports, filings and data. See all sources