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 that don'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

Record-breaking property

Ultra-luxurious Houston high-rise lists last penthouse for $14.5 million

A rendering of the exterior of the St Regis Residence in Houston

Rendering courtesy of Shimahara Visual

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A new Houston high-rise is issuing a final call for one of its most desirable units. The St. Regis Residences, Houston has one remaining penthouse available for $14.5 million.

A representative touts that the $3,100 per square foot price is a new record for Houston-area high-rises. It’s one of seven penthouses at the property that range in size from 4,500 to 6,500 square feet.

“The last available penthouse at The St. Regis Residences underscores the strength and maturity of Houston’s luxury market,” said Catherine Lee, president of Douglas Elliman Development Marketing, Texas, which is handling sales and marketing for the building. "Discerning buyers are consistently choosing standalone branded residences that deliver enduring quality, trusted service, and global brand recognition — all of which is evidenced by the premium price-per-square-foot. Opportunities of this caliber, particularly at this level of scarcity, are increasingly rare.”

A rendering of a penthouse at the St Regis Residence in Houston A rendering illustrates one of the building's penthouses.Rendering courtesy of Shimahara Visual

As CultureMap has previously reported, Houston-based commercial real estate firm Satya is building the 37-story, curvilinear tower. Set on a nearly four-acre property near Houston’s iconic Bayou Bend Collection (102 Asbury Street), the tower will offer 90 residences.

Buyers can select from various floor plans, including one-bedroom units. Pricing for these luxurious homes begins at $3 million, with residences starting on the 10th floor.

Residents will enjoy more than 40,000 square feet of amenities, including butler service, a lap pool, steam rooms, saunas, fitness studio, dedicated training space, a yoga and movement studio, and St. Regis-branded bicycles. A dedicated children’s activity center, gaming lounge, theater, and event space will offer entertainment for all ages, while the Cognac Bar and Astor Room on the 26th floor will provide a refined dining experience in homage to the St. Regis founding family.

Additional perks include co-working spaces, two guest suites, and full-building backup generators — an invaluable feature in Houston.

The project is expected to break ground this spring, with an expected completion of early 2029. So far, the building has more than $180 million in gross sales, according to press materials.

“The demand for this level of condominium in Houston continues to show the market is prime for a new paradigm of residential experience and the impeccable service of legendary hospitality that The St. Regis brand is known for,” said Sunny Bathija, owner and developer of The St. Regis Residences, Houston and CEO of Satya.

St. Regis Residences, Houston, is neither owned nor developed by Marriott International or Marriott, but rather SR Luxury Condominium, LTD. It has licensed the St. Regis marks from Marriott for the project.

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Brianna McClane contributed to this article.

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