Houston Rents Flat, Supply Rising - What This Means for You
The Houston rental market is shifting, and property owners need to understand both the risks and the opportunities. At Emerson Property Management, we track performance data and market trends closely so our clients can stay ahead. Here’s what’s happening in the market right now.
📊 Emerson Portfolio Performance at a Glance
Rent Collection Rate: 94.0% (vs. 95% national average)
Eviction Rate: 0.8% (vs. ~9% Houston average)
Occupancy Rate: 91.1% (slightly above Houston average)
Our rent collection continues to improve as we remove non-paying residents. While evictions are taking longer due to residents filing extensions or appeals, our overall eviction rate remains well below the market. Each case is reviewed as a risk-management exercise to ensure our screening standards remain effective.
Takeaway: Tenants are becoming more savvy at delaying evictions, which can increase lost income and risk. The best protection is strong upfront screening and being prepared for longer timelines if eviction becomes necessary.
📈 Houston Market Snapshot
New Listings (HAR): 5,764 → 7,869 (+36.5% YoY)
Average Rent: $2,430 → $2,424 (-0.2% YoY)
Average Days on Market: HAR – 34 days | Emerson – 31 days (8.8% faster)
Supply is climbing and rent growth is flat, but demand remains resilient. Houston continues to attract new residents and was recently ranked among the top U.S. cities where people want to live. Higher interest rates and affordability challenges are keeping many would-be buyers in the rental pool.
Builders are sustaining sales through aggressive financing incentives, but resale values are softening as price cuts hit their highest levels since the pandemic.
For long-term investors: This means strong rental demand, steady retention, and buying opportunities at better terms than we’ve seen in years.
For sellers and flippers: More competition, deeper concessions, and a higher likelihood of price cuts. If you can, waiting 2–3 years to sell may yield better results.
🛠️ Maintenance & Resident Satisfaction
Median Speed of Repair: 4.1 days (vs. national avg. 6–7 days)
Resident Satisfaction: 4.4/5.0
Lease Renewal Rate: 81.8% (vs. ~55–65% national average)
Fast repairs and proactive decisions are key to protecting properties while keeping residents satisfied. Last month, nearly 30% of work orders were resolved or appropriately declined — without sacrificing satisfaction.
Takeaway: Quick response times and smart repair decisions build resident trust, reduce turnover, and protect your bottom line.
📸 Value-Add Spotlight: Simple ROI Wins
Not every improvement requires a major renovation.
Example: 10918 Barker View Drive
Make-ready cost: $2,740 (HVAC service, rekey, code work, cleaning, touch-ups)
Result: Rent increased by $144/month = $1,728 more per year
ROI: 63% return on investment
Lesson: Small, cost-effective improvements can deliver outsized returns.
🧠 Owner Insight of the Month
Zillow confirms what we’ve long practiced: allowing pets reduces vacancy. Homes that allow pets lease an average of 8 days faster than those that don’t.
Tip: In today’s competitive market, pet-friendly policies are one of the simplest ways to keep properties occupied and cash flow steady.
✅ Final Takeaway for Owners
Rental demand in Houston remains strong, even as rents flatten.
Emerson continues to outperform the market in leasing speed, renewals, and resident satisfaction.
For long-term investors, this environment offers opportunities not seen in the past five years.
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