Houston’s Rental Market Surges to New Heights in June as Single-Family Demand Outpaces Multifamily Options
Houston’s rental market is breaking records and revealing shifting preferences among renters, with single-family homes leading the charge and townhome and condominium activity trending downward. According to the Houston Association of Realtors’ (HAR) June 2025 Rental Market Update, the number of new single-family rental listings surged to 7,117—marking the highest monthly total ever recorded in the MLS.
Consumer demand is keeping pace. Leased listings of single-family homes rose to 4,590 in June, a 5.2% year-over-year increase from 4,365 in June 2024. Average lease prices also climbed 1.0% to $2,400, while homes spent slightly longer on the market—35 days on average compared to 32 last year.
“What we're seeing in the rental sector really ties into the overall strength of Houston's housing market,” said HAR Chair Shae Cottar with LPT Realty. “We expect leasing activity to remain strong in the coming months, especially with continued demand from people relocating or exploring flexible housing options.”
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Why Single-Family Rentals Are Surging in 2025
Several underlying factors help explain why demand for single-family rentals is gaining momentum across the Greater Houston area:
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Affordability pressures are a key driver. HAR reports the median home price in Harris County rose to $346,651 in June, with mortgage rates holding at 6.82%. These conditions have kept monthly payments near $1,811, putting homeownership out of reach for many.
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Population growth and in-migration continue to fuel leasing demand. Recent U.S. Census Bureau data showed that Texas gained over 473,000 residents in 2024, with Houston ranked among the top five U.S. metro areas for domestic relocation. Many new residents prefer to rent before committing to a neighborhood long term.
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Build-to-rent communities are expanding in Houston’s outer suburbs, particularly in areas like Cypress, Katy, and Humble. These purpose-built single-family rental developments have helped boost inventory while meeting the needs of families and professionals seeking more square footage, backyards, and garage space without a mortgage.
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Lifestyle shifts post-COVID continue to influence housing preferences. A Pew Research Center study from late 2024 found that 36% of remote-capable workers still work from home at least part-time, increasing the demand for rental homes with home offices and outdoor areas—features that townhomes and condominiums often lack.
Multifamily Market Slows in Comparison
While the single-family segment flourishes, Houston’s townhome and condominium rental activity has slowed. HAR reported that 672 townhome/condo units were leased in June 2025, down 10.6% from 752 in June 2024. New listings fell 6.3% year-over-year to 1,130, while the average lease price rose modestly by 1.0% to $2,017. These units leased more quickly, with the average time on market decreasing from 44 to 42 days.
Analysts suggest that renters looking for larger floorplans, private outdoor spaces, and better remote work conditions are choosing single-family options over urban multifamily settings.
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Looking Ahead
Houston’s rental market appears poised for continued strength heading into the second half of 2025. The combination of growing inventory, shifting economic conditions, and sustained population inflow will likely keep leasing activity robust, especially for single-family homes.
For renters, the current climate offers more choices than ever—particularly in Houston’s suburbs—while landlords and investors are benefitting from stable lease rates and high absorption of available inventory.
Stay connected with My Neighborhood News and HAR.com for ongoing updates on Houston’s housing and rental market trends.
Tiffany Krenek has been on the My Neighborhood News team since August 2021. She is passionate about curating and sharing content that enriches the lives of our readers in a personal, meaningful way. A loving mother and wife, Tiffany and her family live in the West Houston/Cypress region.
