Single-family rental activity in Houston decelerated from July to August, according to the latest Rental Market Update from the Houston Association of REALTORS®. However, leases still increased on a year-over-year basis.

Leases of single-family homes rose 12% year over year, with 4,096 leases signed during the month. That marks the third-highest amount of leases signed in a one-month period in Houston history. The average lease price also rose 1.5% to $2,344, the second-highest monthly rent for a single-family home ever recorded in Houston.

New listings rose by 8.4%, meeting demand in August. Average days on market increased from 23 days to 28 days.

“The one trend that has been consistently strong across greater Houston throughout 2023 is demand for single-family rental homes,” HAR Chair Cathy Treviño said in a press release. “The rental market will likely remain strong until consumers feel confident about returning to the resale market if and when interest rates ease and pricing hits what they consider their sweet spot.”

Townhome and condominium leases, meanwhile, remained statistically flat with just over 700 leases signed in August 2022 and August 2023. New listings of townhomes and condos jumped up 15.2%, while the average lease price rose 2.2% to $1,969.