HOUSTON – (By Dale King, Realty News Report) – Houston’s apartment rents fell 3.5 percent in 2020 as the coronavirus pandemic dealt a major blow to the economy.
According to the January 2021 Houston Rent Report from Apartment List, the average cost of leasing an apartment in the Bayou City has not risen since before the pandemic took hold last March.
That said, rental rates in many suburban areas around Houston have not experienced the same declines as the city’s core.
The full Apartment List Rent Report for January shows significant regional variation in how the COVID-19 pandemic affected rents across the United States. While the national rent index fell a modest 1.5 percent year-over-year, some markets saw much greater volatility.
“The urban cores of San Francisco, Seattle, Boston and New York City continue to see rent prices fall rapidly, while many smaller markets and suburbs are actually getting more expensive,” the report observes.
“The recent trend follows an unusual summer,” the report adds. “The COVID-19 pandemic forced renters to pause spring moving plans. Prices fell steadily from March through June—typically the busy season when rents rise rather than decline.”
In Texas, Apartment List reports that Houston rents declined 0.4 percent over the past month and are down 3.5 percent compared to the same time last year. Median rents in Houston currently stand at $898 for a one-bedroom apartment and $1,068 for a two-bedroom. This marks the ninth consecutive month of rent decreases after a brief increase in March 2020. Houston’s year-over-year rent decline trails the state average of -2.1 percent and the national average of -1.5 percent.
The report notes that some renters are relocating from Houston’s central neighborhoods to suburban communities, seeking larger or more suitable living spaces at equal or lower cost, or only slightly higher cost.
Although rents in Houston proper have decreased over the past year, several suburban markets in the metro area have seen rents rise. Five of the ten largest suburban markets around Houston recorded rent increases.
Here’s a snapshot of rents across several of the largest cities in the Houston metro:
- Houston proper recorded the largest rent drop in the metro over the past year at -3.5 percent. Median rents are $1,068 for a two-bedroom and $898 for a one-bedroom.
- Rosenberg posted the fastest rent growth in the metro with a 2.1 percent year-over-year increase. Median rents there are $1,064 for a two-bedroom and $886 for a one-bedroom.
- Baytown has the most affordable rents in the metro, with a median two-bedroom rent of $1,034. Rents in Baytown fell 0.5 percent over the past month and remained essentially flat year-over-year.
- League City has the highest rents among the largest cities in the Houston metro, with a median two-bedroom rent of $1,629. League City’s rents decreased 0.7 percent over the past month but rose 1.9 percent over the past year.
While Houston’s rents have fallen substantially, many comparable cities nationwide saw rent increases—sometimes by wide margins. Even so, Apartment List emphasizes that Houston remains more affordable than most large U.S. cities.
Additional takeaways from the Apartment List report for the Houston region include:
- Texas as a whole recorded a -2.1 percent year-over-year decline in rents, even as several other Texas cities experienced moderate increases.
- Houston’s median two-bedroom rent of $1,068 sits slightly below the national median of $1,090. Nationwide rents fell 1.5 percent over the past year compared with Houston’s 3.5 percent decline.
- Some cities posted rent increases over the past year—Memphis saw rents rise 6.9 percent and Phoenix increased 4.2 percent, for example.
- Renters generally find more affordable options in Houston than in many similar large cities. San Francisco’s median two-bedroom rent of $2,305, for instance, is more than twice Houston’s median.
The report lists median one-bedroom and two-bedroom rents for Houston and several nearby municipalities: Houston, $900 and $1,070; Pasadena, $830 and $1,050; Pearland, $1,320 and $1,560; League City, $1,280 and $1,630; Sugar Land, $1,180 and $1,500; Baytown, $820 and $1,030; Galveston, $890 and $1,130; Rosenberg, $890 and $1,060; Tomball, $940 and $1,170.
The coronavirus pandemic has slowed or halted many projects and activities in Houston. Job losses have been significant and the multifamily market has been affected, yet several new apartment communities are moving forward. Developers including Hines and High Street are building high-rise residential towers in downtown Houston.
Jan 11, 2021 Realty News Report Copyright 2021
File: Houston Apartment Rents Fell 3.5 Percent Last Year
Caption: The new Fein Canopy at Springwoods Village apartments.