Competition increased in Houston’s rental market in the second half of 2022, although new apartment development is poised to keep up with consumer demand in 2023. Builders have plans to add over 75,000 apartments to the greater Houston area, according to Berkadia’s most recent Construction Pipeline Report.
There were 327 total apartment projects in development in Houston at the end of 2022. That amounts to 76,182 apartment units that were under construction, planned, proposed or in lease-up.
Of the apartment developments in Houston’s pipeline, about 42% are already under construction while about 47% are only in the planning stages — meaning approximately half of the apartments in the pipeline may not come to fruition.
Berkadia’s report splits up Houston’s rental market into five areas: Central Houston, Northeast Houston, Northwest Houston, Southeast Houston and Southwest Houston.
Northwest Houston has the largest share of new apartments under construction, while Central Houston has the greatest number of total planned apartments.
Here are some of the numbers from Berkadia’s report:
- Lease-up: 1,843 units
- Under construction: 5,774 units
- Planned: 10,506 units
- Total: 18,123 units
- Lease-up: 1,339 units
- Under construction: 5,963 units
- Planned: 9,202
- Total: 16,504 units
- Lease-up: 2,421 units
- Under construction: 10,300 units
- Planned: 4,640 units
- Total: 17,361 units
- Lease-up: 1,824 units
- Under construction: 3,321 units
- Planned: 6,626 units
- Total: 11,771 units
- Lease-up: 678 units
- Under construction: 6,778 units
- Planned: 4,967 units
- Total: 12,423 units