More Choices, Steady Prices: Houston Renters Gain Leverage as Market Warms Up in July
Renters across Houston had more options in July than they’ve seen in years, as a surge of new rental listings hit the market—offering a welcome dose of flexibility for those still weighing their housing decisions.
According to the Houston Association of Realtors (HAR) July 2025 Rental Market Update, the number of leased single-family homes rose 6.5% year-over-year to 4,645, while the number of new rental listings jumped a staggering 36.5%, reaching 7,869. Although Hurricane Beryl skewed comparisons to July 2024, the increase in rental inventory and stable pricing reflect larger economic forces at play in Greater Houston.
A Pause Before Buying
With average lease prices for single-family homes holding steady at $2,424—just $6 below last year’s record—many Houstonians are finding it practical to rent longer while waiting for mortgage rates to drop more significantly.
“Increased supply is giving renters more options and helping to balance pricing,” said HAR Chair Shae Cottar with LPT Realty. “As mortgage rates continue to ease, some renters who’ve been sitting on the sidelines may finally feel ready to take steps toward homeownership.
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But for now, the sidelines are still crowded. Data from the Federal Reserve shows that 30-year fixed mortgage rates averaged 6.7% in July 2025—down from their 2023 peak near 7.8%, but still far above the pandemic-era lows that spurred a homebuying frenzy just a few years ago. The result: many would-be buyers are staying put in rentals, or opting for leases as they wait for better affordability.
This trend is visible across the country. According to the U.S. Census Bureau’s most recent Housing Vacancies and Homeownership report, the national homeownership rate declined slightly to 65.5% in Q2 2025, reflecting affordability pressures and shifting lifestyle preferences. Meanwhile, the U.S. Department of Housing and Urban Development (HUD) has reported increasing demand for rental housing—especially single-family rentals in suburban areas like Cypress, Katy, and Spring—driven by a growing number of middle-income households priced out of homeownership.
Townhomes and Condos: A Different Tempo
While single-family rentals gained traction, the townhome and condo market showed signs of seasonal cooling. HAR reported a 2.0% year-over-year decline in leased townhome/condo listings, with 731 units signed in July. The average lease price dipped 3.4% to $1,977.
However, the number of new listings for townhomes and condos rose 16.0%, totaling 1,223—suggesting that inventory may be outpacing current demand. The average days on market for these properties also increased from 40 to 45 days, indicating a slightly slower pace in leasing activity.
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Experts say the disparity in performance between single-family rentals and multifamily-style units like condos is part of a broader consumer preference shift. According to a 2025 report by the Joint Center for Housing Studies at Harvard University, renters—especially families and professionals working remotely—are increasingly prioritizing space, privacy, and suburban environments, which single-family rentals tend to offer more consistently than condos or townhomes.
Additionally, Houston’s condo market has historically attracted a higher percentage of younger renters and empty nesters, two demographic groups more sensitive to economic volatility. Rising insurance premiums and HOA fees associated with many condo properties have also made some units less competitive compared to detached single-family rentals, especially in a climate where affordability is top of mind.
As more renters focus on lifestyle flexibility and value, the demand for larger rental homes with yards, garages, and proximity to schools continues to grow—leaving attached units slightly lagging unless competitively priced or uniquely located.
Looking Ahead: Fall Could Bring More Opportunity
As the Houston real estate market heads into fall, all eyes are on the mortgage rate trajectory and how it may affect the rental market in Q3 and Q4. If rates continue to soften, more renters may begin transitioning into the buyer pool. But until then, the abundance of choices in the rental market is giving renters something they haven’t had in a while: leverage.
Stay tuned with My Neighborhood News for more local housing updates, economic trends, and resources for renters and homeowners across Greater Houston.
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.
