Recent data shows the demand for rental homes in Houston is growing.
According to the Houston Association of Realtors, in February leases of single-family homes rose by 14.6 percent year-over-year in the metro.
At the same time, average rents at single-family homes only rose by 0.6 percent to $1,688.
Increased demand for townhomes and condos is also occurring, as the volume of these leases rose by 10.3 percent year-over-year.
As of February, rents for these homes averaged $1,545.
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HomeUnion recently cited Houston as the fifth best market nationally for single-family rental investors. According to the source, single-family investors, typically cash buyers, are purchasing homes in the metro at 6.1 percent cap rates.
These buyers view single-family homes as a stable investment where achievable returns can beat the stock market.
The Woodlands rental homes
In one of Houston’s largest luxury submarkets, the stock of rental homes is beginning to see an uptick.
This February there were a total of 140 home rental leases the Woodlands, up from 124 leases during the same time last year, according to HAR.
The 111 single-family rentals in the market rent for an average of $2,099. Last February there were 90 single-family leases.
The volume of townhomes and condos is minimal, only 29 leases.
The inventory of single-family rentals in the Woodlands is occurring while the market is receiving a sizable amount of new multifamily supply.
Spanning this January through May, seven multifamily projects will be delivered in the Woodlands/South Conroe market, according to data from Apartment Data Services. These projects will account for nearly 2,200 units. There are currently three additional multifamily developments proposed for the market.
