Leases of single-family rentals rose 5.5% year over year in February, indicating a sustained demand for rental properties in Houston as high mortgage rates persist.

According to the latest Rental Market Update from the Houston Association of REALTORS® (HAR), 3,402 leases were signed last month, up from 3,226 in February 2023. Meanwhile, the average rent rose 2.7% to $2,211.

Houston also saw an 18.7% increase in new listings of single-family rentals, adding to an “already ample” supply of available units.

“More listings mean more choices for renters, making it easier for them to find a home that suits their lifestyle,” HAR Chair Thomas Mouton said in the report. “The steady rise in single-family rentals and modest rate increases show that renting remains a viable option for consumers who are still waiting to see what happens with interest rates this year.”