The Houston single-family rental market cooled slightly in December, according to the latest report from the Houston Association of REALTORS®.

Leases of single-family rentals dropped 1.2% year over year, with 2,986 leases signed in December 2023 compared to 3,023 in December 2022. Meanwhile, the average lease price increased 2.4% to $2,207, up from $2,156 a year prior.

“Lease properties had an incredible 2023 as they provided a critical alternative to buyers that were concerned about prices and mortgage rates but still needed housing,” HAR Chair Thomas Mouton said in the report. “While leases slowed a bit in December, we should see activity begin to pick up now that the new year is underway.”

Amid slower leasing activity, the typical single-family rental stayed on the market an extra two days last month, up from 36 days in December 2022.

Active inventory of single-family rental homes also rose last month, with 4,270 total units on the market compared to 3,808. That’s an increase of 12.1% year over year.