Houston’s single-family rental market experienced a solid year of growth in 2025 as prices remained stable and inventory reached record levels.
According to the Houston Association of Realtors’ December/Full-Year 2025 Rental Market Update, single-family rental leases climbed 9.4 percent year-over-year. A total of 3,283 homes were leased compared to 3,002 in December 2024.
New rental listings jumped 21.2 percent year-over-year with 5,486 listings added to the Multiple Listing Service in December compared to 4,525 the prior year.
Lease prices remained largely unchanged throughout much of 2025. The average lease price edged down by 0.8 percent in December to $2,245, marking the sixth consecutive month of statistically flat pricing.
Homes took longer to lease in December. Days on Market increased from 41 to 48 days, the highest level since February 2019, when single-family rentals averaged 50 days on the market.
For the full year, single-family rentals totaled 47,292 versus 44,551 in 2024, representing a 6.2 percent increase. Total dollar volume rose 6.9 percent year-over-year to $110.2 million.
“A growing supply of rental properties gave renters more flexibility in 2025, while steady demand kept leasing activity moving at a healthy pace without putting upward pressure on prices,” said HAR Chair Theresa Hill with Compass RE – Houston. “Even as interest rates ease, rental demand is expected to remain strong this year.”
Houston’s townhome and condominium rental market experienced a slow start in 2025 before showing signs of improvement toward the end of the year. Leased listings declined year-over-year during the first half of the year but rebounded in the final quarter, posting three consecutive months of growth.
For full-year 2025, townhome and condominium rentals decreased 3.9 percent, with 7,171 leased listings compared to 7,460 in 2024. Total dollar volume also declined, falling 4.3 percent year-over-year to $13.9 million.
In December, leased listings of these property types rose 11.2 percent to 518 units, up from 466 a year earlier. The average lease price was $1,903, which is 3.0 percent above the prior year’s level. The average time it took to lease one of these properties increased from 49 days in 2024 to 51 days in December 2025.
