Metro Vacancy Falls 40 bps to 7.1%

Houston apartment vacancy fell 40 basis points to 7.1% in the second quarter, according to Northmarq, the biggest quarterly improvement since 2021.

Two ways to measure

Vacancy numbers vary by source. Cushman & Wakefield, which tracks stabilized vacancy with its own methodology, puts the metro at 11.1%, down 30 basis points from the first quarter. The level differs, but the direction is the same: fewer empty units than three months ago.

The tightest submarkets

Several suburban markets are already well below the metro average. Cushman & Wakefield lists Sugar Land/Missouri City at 6.4%, Pearland at 6.5%, Northeast Houston at 6.6% and North Galveston County at 6.7%. The Woodlands, the Heights and Downtown all sit at or below 7.9%.

Rents by submarket

The priciest submarkets are inside the Loop. Average effective rents were $2,124 Downtown, $1,956 in Neartown/River Oaks, $1,664 in the Heights and $1,613 in Medical Center/West University. A few areas already posted annual rent growth: East End Houston (+2.8%), South Central Houston (+2.6%) and Northeast Houston (+1.9%).

Northmarq expects vacancy to keep falling as supply eases, moving toward the metro’s historical average of about 6%.