Houston apartment construction slows down
Add Axios as your preferred source to
see more of our stories on Google.
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.