While volatile mortgage rates weighed on Houston home sales throughout 2024, it was a solid year for the rental market. Demand remained robust throughout the year as some homebuyers opted to rent while awaiting more favorable market conditions.

There were signs of moderation in December with interest rate fluctuations and seasonal demand shaping the rental market. According to the Houston Association of Realtors’ (HAR) December/Full-Year 2024 Rental Market Update, leased listings were statistically flat with 2,972 single-family home rentals in December compared to 2,999 last year. There was a modest increase in the average lease price to $2,254. That is up 2.0 percent year-over-year.

New listings rose 5.3 percent in December, with 4,507 single-family rental properties added to the Multiple Listing Service (MLS). Days on Market, or the actual number of days it took to lease a home, increased from 38 to 41 days.

Single-family home rentals for full-year 2024 totaled 44,551 versus 43,109 a year earlier. That is a 3.3 percent increase. Total dollar volume rose 6.0 percent to $103 million, which is the highest total dollar volume recorded for single-family rentals in the Houston area.

“The rental market proved to be a stable force for Houston real estate in 2024 with consistent demand throughout the year,” said HAR Chair Shae Cottar with LPT Realty. “There is a robust supply of rental properties to meet demand while those consumers wait for conditions that they consider more suitable to buy a home. I believe there will be continued strength in the rental sector this year.”

The townhome and condominium rental market experienced its third decline of 2024 in December, with leased listings declining 12.4 percent to 454 units compared to 518 last year. The average lease price was statistically unchanged at $1,850.

The number of new listings for townhomes and condominiums dipped 8.5 percent to 782 units compared to 855 last year. The average time it took to lease one of these properties increased to 49 days in December.

For full-year 2024, townhome and condominium rentals were up 2.0 percent with 7,460 leased listings compared to 7,312 the prior year. Total dollar volume rose 3.2 percent year-over-year to $14.6 million.

HAR’s Rental Market Update is distributed the third Wednesday of each month, one week after the release of the monthly Sales Market Update. An archive of all HAR housing reports is available in the HAR Online Newsroom.