Despite Recent Pain, Multifamily Investors Remain Bullish on Northwest Houston

As to be expected, transaction activity decelerated in Houston’s multifamily market in 2022 from 2021’s peak. Higher borrowing costs, decelerating rent growth prospects over the near term and a widening gap in buyer and seller expectations for property pricing weighed on investment activity. More than 86,000 apartment units were sold in Houston in 2022, about 25% less than the 115,000 units that were sold in 2021. Still, 2022's total is almost 50% above the annual average of 56,000 units sold across the Houston market between 2010 and 2019, before the pandemic.