renting in the big city

Houston is building more homes for rent than nearly any other U.S. city

Houston is building more single-family rental homes than many other U.S. cities.

A new rental report has revealed Texas is leading the nation with the highest single-family home rental construction growth, and Houston is among the top five U.S. metros building the most new homes for rent.

The analysis from rental listings website Point2Homes examined construction rates and building permit data for single-family homes that are "located in build-to-rent, professionally managed communities" across America. For the purpose of the study, build-to-rent homes are defined as units thatdon't share any walls with other homes, and includes those that have shared walls but do not have neighbors above or below or have a direct-access garage.

According to the report's findings, Houston's rental home construction rate is the 5th highest in the nation, and the metro area is expected to build 4,613 new single-family homes for rent in 2025.

The greatest share of rental homes – 1,007 units – are being built in Cypress, while Houston proper is only expecting to build 326 rental homes.

This is how many build-to-rent homes are being built across other Houston-area cities:

922 units – Rosharon
466 units – Hockley
342 units – Montgomery
320 units – Fresno
266 units – Katy
192 units – Pearland
164 units – Baytown
162 units – Atascocita
151 units – Texas City
148 units – Tomball
147 units – Fulshear

"Startup hub and major energy and biomedical research player, Houston is one of the most populous metros in the nation, the issue of housing being at the forefront," the report's author wrote. "That's why large communities like Pradera Oaks; Willow at Marvida; and Lakeside Conroe, which will provide renters with hundreds of new options, are expected to really make a difference."

Build-to-rent growth rates in Texas
Houston's rental home construction helps make up the total 21,812 units that are planned or currently being built in Texas this year.

The report claims Texas' healthy job market, remote work flexibility, and its business-friendliness are the top reasons why the build-to-rent growth has soared so high.

Doug Ressler, senior analyst and manager of business intelligence at Yardi Matrix (Point2Homes' sister company), says affordability is another major factor.

"The biggest hurdle to buying a home for [build-to-rent] BTR residents is high mortgage rates, so BTR homes provide an affordability solution in today’s increasingly expensive housing market," Ressler says. "On average, renting a BTR unit is cheaper than buying a starter home. Recent reports indicate that renting can save one around $1,000 per month compared to buying. This is largely due to high mortgage rates and elevated home prices."

Ressler adds that the target markets – Millennials and Gen Z – are increasingly interested in new single-family home rentals to avoid the hurdle of paying high property taxes while still managing other debts like student loans. This also allows them to remain close to the city in a nearby suburb, rather than in rural areas.

"As urban areas become more congested and expensive, there’s a growing trend towards suburban living," Ressler said. "BTR properties in suburban areas offer more space and affordability while maintaining connectivity to urban centers."

Other Texas metros with skyrocketing single-family rental growth
Texas cities dominated the top 10 U.S. metros with the greatest build-to-rent growth rates. Dallas ranked No. 2 nationally with 8,470 new homes being built for rent in the metro.

Meanwhile, Austin and San Antonio ranked No. 6 and No. 8 respectively. Austin currently has 4,313 new single-family rental homes in the pipeline in 2025, while San Antonio is expected to build 2,994 units.

Phoenix, Arizona topped the nation with the No. 1 highest new rental home construction rate. The Valley of the Sun is expected to complete 13,113 build-to-rent homes in 2025.

The top 10 U.S. metros building the most new rental homes in 2025 are:

No. 1 – Phoenix, Arizona
No. 2 – Dallas, Texas
No. 3 – Atlanta, Georgia
No. 4 – Charlotte, North Carolina
No. 5 – Houston, Texas
No. 6 – Austin, Texas
No. 7 – Orlando, Florida
No. 8 – San Antonio, Texas
No. 9 – Raleigh, North Carolina
No. 10 – Huntsville, Alabama

rentals construction real estate houston

A home with a view

Only 2 penthouses remain unsold at hotel-connected Houston high-rise

Exterior of the a penthouse at The Residences of The Allen

Photo courtesy of DC Partners

The Residences at The Allen are perched atop the Thompson Hotel.

Take sweeping views of Houston and combine them with thoughtful design elements and luxe living, and the result is the Residences at The Allen.

Located at the southeast corner of Allen Parkway and Gillette Street, The Residences at The Allen anchor a six-acre mixed-use development by DC Partners. The exclusive homes are above the chic Thompson Hotel, and offer luxury living, breathtaking views, thoughtful design, and unparalleled amenities.

The space is rapidly approaching closeout, with only two penthouses left on the market. Ranging in size from 3,500 to 7,200 square feet, these shell-spaces are listed in the upper $3 million range, giving buyers their final opportunities to own a piece of Houston’s most prestigious address.

Imagine a home that blends every modern amenity with the luxe living of the finest hotel. That is what owners at The Residences at The Allen enjoy. There’s a private Fendi lobby with a 24-hour concierge and valet. The Thompson Hotel’s one-acre pool deck, with cabanas and a private resident changing room, is a relaxing retreat. The exclusive owners’ lounge and card room provide elegant spaces to connect and unwind.

Residents can also order meals from the Thompson Hotel’s room service menu, and have access to housekeeping and the hotel’s state-of-the-art spa, which offers rejuvenating treatments. There’s also the fully equipped fitness club, onsite restaurants, and a helistop.

“These spaces represent the highest standard of luxury living, showcasing the unparalleled lifestyle offered at The Allen,” said Samuel Katz, director of sales for the Residences at The Allen. “I’m truly excited to see these residences come to life once the design and build are complete — and I can only hope I get an invite to the housewarming party."

Two penthouses, totaling 11,000 square feet, previously listed for $7.25 million and $9 million respectively, are now off the market. In addition to the two penthouses remaining, there are also a limited number of two- and three-bedroom residences available, with prices starting at $1.9 million.

Photo courtesy of DC Partners

The Residences at The Allen are perched atop the Thompson Hotel.

homes-for-sale high-rises hotels