Houston apartment construction slows down
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While Houston remains one of the top U.S. metros for new apartments in 2025, it trails behind other major cities — including Dallas and Austin — as developers ease off after several years of historic growth.
Why it matters: The city's apartment pipeline is cooling after a pandemic-fueled boom. Deliveries in Houston are expected to drop 37.6% from last year, part of a broader slowdown. Still, developers continue to bet on the state's growth and affordability.
What they're saying: The region's "business-friendly environment, relative affordability and less restrictive zoning laws … stand in sharp contrast" to more restrictive coastal areas, Doug Ressler of data provider Yardi said in the report.
The big picture: More than half a million new apartments are expected to be completed nationwide this year — down about 21% from 2024's record. Rising construction costs, higher interest rates and a growing supply in some markets are making builders more cautious about breaking ground.
By the numbers: In the greater Houston area, 14,439 units are slated to open this year.
- Houston proper will see most of them — 7,770 units — followed by Cypress (1,343) and Spring (1,109).

The latest: A 317-unit luxury tower, Hanover Buffalo Bayou, recently completed construction in one of the slowest years for Montrose-area apartment construction in more than a decade.
- The 40-story building stands out as Houston's tallest new apartment tower this year.

