Introduction to Houston’s Apartment Construction Boom
Houston is experiencing a significant apartment construction boom, with the city ranking third in the nation for new apartment construction in 2025. According to a report by RentCafe, Houston is expected to build 7,770 new apartments by the end of the year, just 389 fewer units than in 2024. This construction boom is driven by the city’s growing population and its reputation as a migration magnet with excellent job and economic growth rates.
The State of Apartment Construction in the US
More than 500,000 apartments are currently in development across the US, with over half of these units being built in the South. The report found that five major Texas cities, including Austin, Houston, San Antonio, Dallas, and Fort Worth, are leading the building boom. Texas’s streamlined approval processes and fewer regulatory hurdles make it an attractive location for multifamily projects. Additionally, elevated home prices and a shortage of attainable for-sale housing are driving demand for rental housing.
Houston’s Ranking Among US Metros
In a separate ranking of the top 20 US metropolitan areas for apartment construction, Houston ranked eighth, with 14,439 apartments expected to be completed by the end of 2025. The majority of these units will be built in Houston proper, with Cypress having the second-highest rate of new apartment construction in the metro area. Other Houston-area cities, such as Spring, Humble, and Katy, are also expected to complete a significant number of new apartments by the end of the year.
Comparison to Other US Cities
Dallas-Fort Worth has the second-highest number of new units being built in the US this year, with 28,958 apartments expected to be completed. However, this represents a 22.4% drop in completed apartments compared to 2024. Despite this slowdown, the Metroplex remains one of the top places in the country for new apartment completions, with high demand for housing driven by the area’s growing population.
Top 20 US Metro Areas for Apartment Construction
The top 20 US metro areas for apartment construction in 2025 are:
- No. 1 – New York, New York
- No. 2 – Dallas-Fort Worth, Texas
- No. 3 – Austin, Texas
- No. 4 – Phoenix, Arizona
- No. 5 – Atlanta, Georgia
- No. 6 – Charlotte, North Carolina
- No. 8 – Houston, Texas
- No. 9 – Washington, D.C.
- No. 10 – Denver, Colorado
Conclusion
In conclusion, Houston’s apartment construction boom is driven by the city’s growing population and its reputation as a migration magnet. With over 7,700 new apartments expected to be built in 2025, Houston is ranked third in the nation for new apartment construction. The city’s streamlined approval processes and high demand for rental housing make it an attractive location for multifamily projects. As the population continues to grow, it is likely that Houston will remain a hub for apartment construction in the years to come.
