Houston's Rental Market Expands With New Inventory and Build-to-Rent Developments in March 2025
As Houston’s housing inventory continues to grow in early 2025, prospective renters are seeing more options in the single-family rental market, including in suburban communities like Katy, Cypress, and Tomball. According to the Houston Association of Realtors’ (HAR) March 2025 Rental Market Update, this upward trend in housing supply is helping meet consistent demand for rental homes across the metro area.
“The Houston rental market is in a good balance as the number of homes available for rent is keeping pace with the number of people looking,” said HAR Chair Shae Cottar with LPT Realty. “As interest rates have stabilized, we have noticed more people who were renting are now starting to think about buying a home. We will be watching the current economic landscape to see if that impacts potential homebuyers’ decision-making down the road.”
Rental Activity Holding Steady in March
In March 2025, a total of 4,088 single-family rental homes were leased, representing a 2.5% increase over March 2024. At the same time, new rental listings rose by 12.2%, with 5,721 properties added to HAR’s Multiple Listing Service—up from 5,098 the previous year. Average lease prices held steady at $2,284, while the average Days on Market edged upward from 39 to 43 days.
These figures reflect a market where demand and supply are in near alignment, offering stability for both tenants and landlords.
Mobile Sidebar Ad
Expansion of Single-Family Rentals and Housing Inventory
Houston’s resale housing market saw a notable 26.3% year-over-year increase in active listings during the first quarter of 2025. This influx has broadened choices for both potential buyers and renters. Elevated mortgage rates, which continue to hover at levels higher than those seen pre-2022, have pushed some would-be homebuyers into the rental market, contributing to demand for single-family rentals in particular.
This phenomenon is part of a national trend, where rising homeownership costs have increased demand for high-quality rental homes. In Houston, that demand is being met with a growing number of purpose-built rental communities.
Build-to-Rent Communities Transform Houston Suburbs
Houston ranks among the top U.S. markets for build-to-rent (BTR) housing, with over 4,800 BTR units projected to be completed by 2026. In particular, suburban areas such as Katy, Cypress, and Tomball are emerging as hotspots for these professionally managed, single-family rental communities.
Katy
- Tricon Peek Road (22851 Terrazzo Drive): Offers 3- to 4-bedroom homes with private yards and stainless steel appliances. 37 homes have been completed with full completion expected by summer 2026.
- Enclave at Mason Creek (21455 Merchants Way): A gated community featuring 192 townhomes ranging from 1,406 to 2,066 square feet.
- Covey Homes Tamarron: Offers spacious homes with flexible leasing options for renters.
- Villas at Sunterra (ONM Living): Provides detached and cottage-style rental homes for long-term living.
- Summerwell Sunterra (Greystar): Modern single-family rentals with upscale amenities.
Cypress
- Wingspan at Bridgeland: A 27-acre project by The Howard Hughes Corporation, featuring 263 BTR homes.
- Mirella by Caldwell Communities (18131 Bluegrass Park Lane): Includes 204 single-family homes and amenities such as a clubhouse, fitness center, and resort-style pool.
- Yardly Cypress (Taylor Morrison): Offers single-story homes with fenced, maintenance-free yards and professional management.
- Meadows at Telge (PCCP LLC): Features 195 homes with shared amenities like a pool, playground, and dog park.
Tomball
- Tricon Willow Creek (9835 Willow Creek Commerce Drive): Offers 148 homes with granite countertops, two-car garages, and rents starting at $2,289.
- Amplify Tomball (17318 N. Eldridge Parkway): A 170-unit townhome community with garages, saltwater pool, game room, and monthly rents ranging from $1,800 to $3,000.
These BTR communities offer renters a lifestyle similar to homeownership—yards, garages, modern layouts—without the long-term financial commitment, and with the added convenience of professional property management.
Mobile Sidebar Ad
Townhome and Condo Rentals Face Declines
While single-family rentals are on the rise, the townhome and condo segment saw a dip. March 2025 reported a 3.4% decline in leased listings, with 604 units rented compared to 625 the year before. New listings also dropped by 3.4% year-over-year to 978, while the average lease price held at $1,926. These properties also took longer to lease, with Days on Market increasing from 45 to 53.
Outlook: A Balanced Market With Opportunities for Renters
Houston’s real estate market remains dynamic and resilient, with growth in both resale inventory and rental options. The balance between demand and supply, coupled with the growth in BTR communities, is offering more housing flexibility to meet the evolving needs of Houstonians.
For renters seeking modern amenities, yard space, and the feel of homeownership without the commitment, Houston’s expanding single-family rental and build-to-rent landscape provides a wealth of opportunities in 2025 and beyond.
Tiffany Krenek has been on the My Neighborhood News team since August 2021. She is passionate about curating and sharing content that enriches the lives of our readers in a personal, meaningful way. A loving mother and wife, Tiffany and her family live in the West Houston/Cypress region.
