Houston Multifamily Vacancy Falls 40 Basis Points as Q2 Absorption Tops 6,500 Units
Updated
Updated · NorthMarq · Aug 19
Houston Multifamily Vacancy Falls 40 Basis Points as Q2 Absorption Tops 6,500 Units
3 articles · Updated · NorthMarq · Aug 19
Summary
Houston multifamily vacancy dropped 40 basis points in Q2 2026—the market’s biggest quarterly improvement in nearly five years.
More than 6,500 units of net absorption drove the decline, up over 60% from a year earlier after supply growth had been tapering for roughly 18 months.
Rents were mostly flat in the quarter despite stronger occupancy, though they remained slightly above year-ago levels after gains earlier in 2026 lost momentum.
Year-to-date multifamily sales still run 31% above the same 2025 period even after Q2 slowed from Q1, with Northwest Houston accounting for 16% of transactions and tying Southeast Houston for the lead.
Roughly 5,600 units are forecast to deliver in 2027—the lowest annual total in nearly 15 years—supporting expectations for lower vacancy, firmer fundamentals and stronger second-half investment activity.