Houston remains among top U.S. construction markets

Writer: Andrea Teran

December 2025 — Houston continues to rank among the top 10 U.S. markets for multifamily construction, with 14,439 new apartment units set for delivery in 2025, according to RentCafe and Yardi Matrix data. That puts the city eighth nationwide, ahead of Denver, Phoenix, and Miami.

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“Houston is a stable market,” Catherine Lee, president of new development in Texas for Douglas Elliman Real Estate, told Invest:. “You don’t see the wild spikes or crashes. Prices grow at a steady pace, which gives confidence to both developers and lenders.”

The city’s diversified economy, strong job base, and relative affordability have helped keep it near the top of national rankings — even as the broader construction boom across the Sun Belt begins to cool.

2025 pipeline drops after record completions

While Houston is still building, developers are tapping the brakes. The 14,439 units projected for 2025 mark a 37.6% decline from the previous year. This reflects a broader slowdown following a surge in completions over the past two years.

“There has always been a significant amount of supply — just that 2023 and 2024 were extreme,” said Itziar Aguirre, director of analytics at CoStar, as reported by the Houston Chronicle.

Developers cite rising interest rates, construction costs, and flat rent growth as reasons for pausing new projects. From 2023 to 2024 alone, Houston delivered 49,149 new apartments, according to CoStar.

Houston trails Dallas and Austin in 2025 rankings

Houston now lags behind other major Texas markets in projected deliveries. For 2025, Dallas is set to deliver nearly 29,000 units; Austin expects 26,700 units; and Houston comes in third with 14,439 units.

Despite the slowdown, Texas leads the nation with more than 81,400 new multifamily units projected statewide in 2025, driven by demand in business-friendly metros across the South.

“Even in a slower market, every deal takes more work — but it’s also when you sharpen your skills,” said Lee. “Real estate is a long game. You have to be patient, strategic, and willing to learn.”

Suburban development gains momentum

While urban submarkets cool, suburban regions around Houston are gaining traction. In Sugar Land, The Morgan Group recently broke ground on a 376-unit development — the city’s first apartment project since 2012. 

“There’s real momentum in areas like Dayton, Crosby, and Columbus,” Tina Khatri, CEO of TDK Construction, told Invest:. “Population growth and industrial activity are creating broad demand — from housing to infrastructure.”

2026 outlook: Fewer starts, slower growth

Houston’s construction pace may be slowing, but long-term demand remains strong. According to Yardi Matrix, apartment completions across the U.S. — including in high-growth markets like Houston — are expected to ramp up again by 2027, driven by population growth and housing needs.

“Growth is still on the horizon — but it has to be thoughtful,” said Khatri. “For us, that means staying agile, modernizing operations, and building strong relationships.”

Want more? Read the Invest: Houston report.