Houston’s Apartment Construction Boom
Houston is experiencing a significant surge in apartment construction, with the city ranking third in the nation for new apartment construction this year. According to a report by RentCafe, 7,770 new apartments are expected to be built in Houston by the end of 2025, just 389 fewer units than in 2024.
The State of Apartment Construction in the US
More than 500,000 apartments are currently in development across the United States, with over half of these being built in the South. The report examined data from 369 US metro areas, focusing on buildings containing 50 or more units. This represents a significant decrease from the 640,000-plus units completed nationwide by the end of 2024.
Texas Leads the Way in Apartment Construction
Texas is at the forefront of the apartment construction boom, with five major cities in the state leading the charge: Austin, Houston, San Antonio, Dallas, and Fort Worth. The state’s reputation as a "migration magnet" with excellent job and economic growth rates is driving this trend. Streamlined approval processes and fewer regulatory hurdles are also making it easier to bring multifamily projects to market in Southern metros.
Demand for Rental Housing
Elevated home prices and a shortage of attainable for-sale housing are pushing more residents towards rentals. For many households, single-family housing ownership is simply out of reach, fueling demand for rental housing. As a result, cities like Houston are seeing a significant increase in apartment construction to meet this growing demand.
Top US Metros for Apartment Construction
A separate ranking by RentCafe places New York, Dallas-Fort Worth, and Austin among the top three US metropolitan areas for new apartment construction in 2025. Houston ranks eighth on this list, with 14,439 apartments expected to be completed by the end of the year. The city of Houston is producing the majority of these finished apartments, while surrounding suburbs like Cypress, Spring, Humble, and Katy are also seeing significant construction.
Apartment Construction in Houston-Area Cities
Here’s a breakdown of the number of new apartments expected to be completed in Houston-area cities by the end of 2025:
- Spring: 1,109 units
- Humble: 792 units
- Katy: 629 units
- Cypress: 1,343 units
Conclusion
Houston’s apartment construction boom shows no signs of slowing down, with the city ranking among the top in the nation for new apartment construction. As the demand for rental housing continues to grow, driven by factors like elevated home prices and a shortage of attainable for-sale housing, cities like Houston are responding by building more apartments. With over 14,000 new apartments expected to be completed in the Houston area by the end of 2025, it’s clear that the city is committed to meeting the needs of its growing population.
