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

hottest headlines of 2025

Here are the 10 hottest Houston real estate headlines of 2025

Photo courtesy of NewQuest

The new Texas Heritage Marketplace will be located along Interstate 10 and the newly completed Texas Heritage Parkway in Katy.

Editor's note: The top real estate stories of 2025 were heavy on buzzy suburbs. Fulshear earned special recognition for its jaw-dropping population growth over the last five and 10 years, while Sugar Land entered the spotlight for its livability and its surprisingly high rental rates. A Houston billionaire was revealed to be one of the top 100 landowners in the country, and a local restaurant duo put their illustrious farm on the market. Read on for the top 10 real estate stories of 2025.

1. Totally sweet Houston suburb triumphs as No. 3 best place to live in U.S. Relocation marketing platform Livability.com named Sugar Land the third-best place to live in America thanks to its appealing size and affordability. The list was restricted to small and mid-size cities with populations between 75,000-500,000 residents.

2. Surprise Houston neighbor was No. 1 fastest-growing U.S. city in the last decade. Fulshear's population growth surged over 1,000 percent from 2014-2023, the report found, and the U.S Census estimates the city now boasts a population of more than 42,600 residents. More on Fulshear's booming population later.

3. Houston oil-and-gas billionaire ranks among America's top 100 landowners. The Land Report revealed that approximately one-quarter of the country's mega-owners of private land have ties to Texas.

4. 2 Houston suburbs rank among fastest-growing affordable cities in U.S. SmartAsset analyzed 50 U.S. cities to find the most affordable places with large population growth. League City and Pearland ranked No. 7 and No. 11, respectively.

5. Cozy Houston neighborhood ranked No. 1 best place to live in Texas. Master-planned community Cinco Ranch was given an"A-plus" rating for its family-friendliness, public schools, diversity, and other factors. The area is able to maintain a close-knit community while having a sprawling population of more than 19,000 residents.

6. Houston developer breaks ground on $400 million, 165 acre Katy project. Houston-based commercial real estate firm NewQuest commenced work on a $400 million, 165-acre, mixed-use shopping center in Waller County at the end of January. The project, called The Texas Heritage Marketplace, will include 750,000 square feet of retail and restaurants, along with 550 apartments in two communities.

7. This wealthy Houston neighbor is the fastest-growing suburb in America. In a narrowed-down analysis of the top American suburbs that have had the highest population increases from 2018-2023, Fulshear once again came out on top.

8. 2 Houston-area ZIP codes top 2024 list of hottest U.S. housing markets. Real estate marketplace Opendoor crowned Katy's 77493 ZIP code as the No. 1 hottest U.S. housing market in 2024, while Cypress' 77433 ZIP secured the No. 2 spot. Affordability was cited as the primary factor that drew newcomers to these suburbs.

9. Houston restaurateurs' 353-acre farm hits the market for $29 million. The sprawling Goodthyme Ranch, owned by Goodnight Hospitality partners Bailey and Pete McCarthy, went on the market in early September. The farm is situated about an hour from downtown Houston in Bellville, and offers a 5,220-square-foot, five-bedroom main house and a 4,560-square-foot, five-bedroom guest house, as well as extensive agricultural and recreational amenities.

10. This Houston suburb had the highest apartment rent prices in June. Zumper's monthly rental report found Sugar Land apartment prices were more expensive than any other Houston-area city over the summer. Despite having the most expensive rent in the metro in June, the asking rent for a single-bedroom apartment in Sugar Land was technically lower than it was in June 2024.

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