Weaker Houston office leasing volume masks an otherwise active market
Average lease size is at all-time low
Market participants in Houston note that the office leasing market is active. In 2024, more than 4,600 leases were signed, the second-highest figure on record, behind the 2023 tall...
Houston’s office market remains highly fragmented in early 2025
What CoStar's Analytics team is hearing from industry players in Houston
Despite having among the highest vacancy rates in the country, not all is bad in Houston’s office market. The leasing market is active and there are bright spots that don't always ...
Houston’s retail market remains fragmented; Quality space difficult to find
What CoStar’s analytics team is hearing from retail players in Houston
Houston’s retail market is more nuanced than it appears at first sight. Despite having among the largest construction pipelines in the country, the market still feels incredibly ti...
Houston’s multifamily market looks to stabilize in early 2025
What CoStar's analytics team is hearing from industry players in Houston
Houston's multifamily market is at a turning point. With vacancy plateauing and rent increases reaccelerating, the mood among property managers has improved. Still, some challenges...
Houston's industrial market has turned a corner
What CoStar's Analytics team is hearing from industry players in Houston
Houston's industrial market has turned a corner. The supply wave is nearly over, demand remains well above historic norms, and vacancies are stabilizing. Still, there are some head...
New industrial leasing volume in Houston slows for third year in a row
2024 total still 25% above pre-pandemic trends
New industrial leasing volume in 2024 tallied a little over 42.3 million square feet, according to CoStar, marking the third consecutive year with a steady decline from the 52 mill...
Three straight years of six-figure job growth ends in Houston
Bayou City adds 58,000 jobs in 2024
According to the latest preliminary data released by the U.S. Bureau of Labor Statistics, Houston added 57,800 new jobs in 2024, the slowest pace since 2020 and far below the 140,0...
Texan titans firmly lead retail construction in new year
Positive population trends and strong retailer demand keep Dallas and Houston busy
As the saying goes, everything is bigger in Texas. This holds true for our major markets of Houston and Dallas, which combined have seen over 6.7 million square feet of retail spac...
Houston’s capital markets show signs for optimism
Multifamily sales volume up more than double year over year
Local brokers have noted that sales activity has picked up since August across most sectors in Houston and the data is echoing that sentiment. According to CoStar, total sales acti...
Annual net absorption falls close to 20-year low in Houston’s retail market
Move-outs, not leasing activity, to blame
While Houston retail leasing activity is on par with recent years, move-outs have surpassed move-ins.
Houston adds most retail space in the country over the past year
Developers continue to target fast-growing suburbs
Houston ranks first in the country for total retail space completed over the past 12 months, as of the first quarter of 2025, adding 3.6 million square feet in that time.
Houston office rent growth led all property types in 2024 for first time in a decade
Sharp pullback in groundbreakings across sectors could help boost performance this year
Rent growth across all property types in Houston last year was less than stellar. None exceeded 2%, and when adjusting for inflation, all four were in the red.
Rent growth in Houston’s multifamily properties could begin to perform similarly across price ranges
Mid-priced properties historically outperform luxury cohort by 150 basis points
Similar to other markets, Houston’s multifamily market has seen a sharp pullback in groundbreakings over the past several quarters in response to high interest rates and constructi...
Education and health services industries drive recent job growth in New Orleans
Despite inflation curbing expansion plans among retailers and distributors, retail vacancy remains low
According to the most recent release from the Bureau of Labor Statistics, the New Orleans region added 4,400 jobs over the first 10 months of the year.
Houston’s office-using job growth is not translating into higher office occupancy
Trend dates back to 2016
According to the U.S. Bureau of Labor Statistics, Houston has added nearly 76,000 new office-using jobs, or, an 11% expansion since December 2019.
More three-bedroom units are being built in Houston
High mortgage rates and house prices pushing many to rent
Between 2001 and 2014, three-plus bedroom units in Houston made up just 7% of the market-rate inventory that builders opened across the region. This year, they are on pace to excee...
Construction slowdown could boost Houston multifamily rent growth in 2025
Rent growth has been flat since mid-2023
Like national trends, multifamily rent growth in Houston has been slowing over the past two years, reaching just 0.6% year over year as of the fourth quarter.
Houston job growth slows, but still within historical trends
Through October, 60,000 jobs gained over past 12 months
As the year draws to a close, the pace of six-figure annual job growth witnessed over the past three years in Houston is likely over. Through October, the Bayou City added 60,200 j...
Construction slowdown could help Houston industrial rent growth resume historical norms in 2025
Demand remains steady but recent supply wave largely to blame for slowdown in performance
Similar to other major metropolitan areas across the country, industrial rent growth in Houston has slowed to a crawl over the past several quarters, reaching just 1.9% year over y...
Shrinking construction pipeline, strong demand aid Texas landlords
While still high, fewer multifamily properties offering concessions in Houston
At the end of October, 35% of apartments in Houston offered rent concessions to tenants, which is slightly above the 30 percent national average. This marks the fourth consecutive ...