Houston single-family rental demand remained strong in September as high mortgage rates continued icing out potential buyers, according to a new rental report from the Houston Association of REALTORS® (HAR).

Single-family home leases rose 8% year over year, with 3,464 leases signed last month. Meanwhile, the average lease price rose 5.1% to $2,298.

“Rental homes are still highly sought after throughout the Houston housing market, and that is the direct result of elevated mortgage rates and home prices overall,” said HAR Chair Cathy Treviño. “We have seen moderation of home prices in recent months, but I believe most consumers right now are more concerned about where interest rates are than about pricing.”

Despite increased demand, average days on market rose by three days year over year, with the typical apartment leased in 30 days. That’s a good indication that the single-family rental supply is keeping up with consumer needs.

Townhome and condo rentals also increased year over year, with 12.6% more leases signed last month compared to September 2022. However, the average lease price fell 3.1% to $1,880 during the month.