reaching new heights

Houston apartment construction surges to 6th highest in the nation

Apartment construction is soaring sky high in Houston.

cdngeneral.rentcafe.com

Apartment construction has been skyrocketing in Houston, and according to a new insight report from RentCafe, the metro area has the sixth highest new apartment construction rate nationwide in 2024.

The report from August 7 analyzed new apartment construction data across 369 U.S. metropolitan statistical areas (MSAs). For the purpose of the study, only apartment buildings containing 50 or more units were included. Any U.S. metros with fewer than 300 units or fewer than two properties/buildings were excluded.

The top five metros with the highest rates of newly built apartments expected in 2024 are New York City, New York (No. 1); Dallas, Texas (No. 2); Austin, Texas (No. 3); Phoenix, Arizona (No. 4); and Atlanta, Georgia (No. 5). Dallas-Fort Worth developers are expected to build a staggering 32,932 total apartment units in 2024, which is just three fewer units than No. 1-ranking New York City's anticipated goal.

The Houston metro area is still expected to complete 18,301 new apartments by the end of the year, so construction appears to be keeping up alongside the top five metros. In just Houston proper, developers are anticipating 8,159 completed units by year-end.

Houston also landed in the No. 3 spot for the highest apartment construction rate between 2020 and 2022, with 53,741 new apartment units opening around the metro since the beginning of the so-called "pandemic building boom."

The report attributes booming construction rates to each metro's steady population growth, the area's thriving job market, and its desirability among major employers.

"Demand for rental apartments in the U.S. continues to outstrip supply, even with recent construction efforts mirroring the building boom of the early 1970s — when a comparable number of rentals entered the market as Baby Boomers were coming of age — due to significant growth in the renter population in the last 50 years," the report's author wrote.

Houston makes up the bulk of new apartments in the area, while Spring is expected to build the second highest number of new apartments in the metro, totaling 2,236 units. Other suburbs like Katy and Richmond will complete an anticipated 1,464 and 907 apartments by the end of the year, respectively.

Here's how many new apartments other Houston-area cities expect to build by the end of 2024:

Conroe – 830 units
Fulshear – 660 units
Montgomery – 626 units
Cypress – 587 units
Humble – 470 units

Houston apartment construction by 2028
Based on the number of newly built apartments from 2019 to 2023, RentCafe's analysts extrapolated that New York, Dallas-Fort Worth, and Austin will continue dominating new apartment construction through 2028. But unlike past years when there was a steady growth in completed units, the report predicts construction will dwindle until 2027; then it will experience a big hike in 2028.

"[A]partment construction starts are expected to keep falling throughout the next year as developers struggle to get financing due to stricter loan standards amid economic uncertainties, which causes delays in projects," the report said.

For context, Dallas-Fort Worth had the highest number of new apartments completed over the five-year period – 128,418 units – from 2019 to 2023, versus New York's 116,207 newly built units. Houston built 83,972 new units during the same time period, landing at No. 3 nationally.

RentCafe calculated New York will once again lead the nation with 150,327 new apartments built by the end of 2028, and DFW will trail behind with 108,178 completed units. The Metroplex's anticipated figures are 28 percent lower than New York's expected apartments.

Houston, however, will slow down construction with a projected 55,785 new apartments by 2028, and the metro will claim No. 9 nationwide.

"[S]everal large metros are set to slow the pace of new apartment construction by 2028, yet they remain some of the nation's heaviest builders," the report said. "Specifically, Houston will welcome 28,187 fewer new apartments compared to the five years leading up to 2024."

The full report and its methodology can be found on rentcafe.com.

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ZIP-ing to TX

These 2 Houston neighbors are the hottest ZIP codes to move to in 2026

16815 Seminole Ridge Drive, Cypress home for sale, Houston home for sale

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This modern farmhouse-style home in Cypress' 77433 neighborhood is on the market for $475,000.

A new migration report has reaffirmed Texas as one of the hottest destinations for movers during the first half of 2026, and two Houston neighbors — Katy and Cypress — are attracting more movers than almost any other ZIP code in America.

Nearly 5.3 million moves were recorded throughout the U.S. during the first six months of the year, according to MovingPlace's new 2026 mid-year migration report. An astounding eight of the top 10 U.S. ZIP codes attracting the most movers are based in Texas, with Katy's 77493 ZIP code ranking No. 4 nationally for the highest number of moves during that timeframe.

Nearly 2,700 moves have been recorded in 77493, which spans Houston Executive Airport to the west and spans east toward Park Row. The ZIP code covers a small portion between I-10 and U.S. 90 to the south, and stretches as far north as Katy Hockley Road and Sharp Road.

Katy has blossomed into a bustling boomtown over the last several years, and MovingPlace says it's one of the fastest-growing suburban communities in the greater Houston area.

"The area’s appeal comes from its combination of new construction, strong school districts, and access to major employment corridors in west Houston," the report's author wrote. "Large-scale residential development has allowed Katy to absorb continued demand from families seeking space and suburban amenities."

The city boasts a population of about 62,300 residents, a median household income of $118,464, and its median home price sits at $321,900, according to MovingPlace's data.

Cypress' 77433 ZIP code ranked No. 7 nationally on MovingPlace's top 10 list of the hottest ZIP codes by total move volume so far in 2026. The city's population has surpassed 112,000 residents with 2,518 new moves recorded during the first half of the year.

The report designates Cypress as an attractive place for families thanks to its "extensive master-planned communities and continued suburban growth." Homes in the 77433 area have a median price of $384,400.

"The area’s newer housing stock, strong schools, and proximity to major employment centers have made it a preferred destination for families," the report said. "And as Houston expands westward, Cypress continues to capture a significant share of regional housing demand."

These are the top 10 hottest ZIP codes in America right now:

No. 1 – New Braunfels, Texas (78130)
No. 2 – McKinney, Texas (75071)
No. 3 – Leander, Texas (78641)
No. 4 – Katy, Texas (77493)
No. 5 – Winter Garden, Florida (34787)
No. 6 – Pflugerville, Texas (78660)
No. 7 – Cypress, Texas (77433)
No. 8 – Summerville, South Carolina (29486)
No. 9 – Aubrey, Texas (76227)
No. 10 – San Antonio, Texas (78253)

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