Houston Multifamily : Momentum in the First Half of 2025

Stability, Opportunity & What’s Next for Your Property -

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At NWC Group Inc., we keep our eyes on the numbers and boots on the ground—because great construction isn’t just about craftsmanship, it’s about timing, insight, and strategy. And right now, the data points to one thing: OPPORTUNITY

According to Colliers’ latest Q1 2025 report, Houston’s multifamily market is showing strong signs of stability, even in the face of tighter lending and shifting economic dynamics. Nearly 3,600 units were absorbed this quarter—more than 66% higher year-over-year, even though new deliveries slowed to just over 3,300 units. That balance helped occupancy hold steady at 88.5%.

📈 Class A properties led the charge, with occupancy rising 250 basis points year-over-year to hit 83.9%—a strong sign that renters are still seeking quality finishes and amenities when making leasing decisions. While rents held flat at an average of $1,276/month, Houston remains well-positioned for long-term rental growth thanks to sustained job creation (+1.8% YOY) and a still-recovering construction pipeline.

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💡 New Construction is Slowing. Timing is Everything.

🚧 And speaking of construction—this is where it gets interesting for management teams planning renovations or repositioning strategies. The total number of units under construction has dropped to 11,046 citywide, a sharp decline from over 20,000 just one year ago.

That’s good news if you’re planning capital improvements or upgrades in 2025: Less new supply means more runway for existing assets to shine, especially if you’re managing an aging Class B or C community and considering a value-add repositioning. With demand high and competition easing, now’s the time to upgrade interiors, refresh amenities, and enhance curb appeal before the next wave of development picks up.

At NWC, we specialize in helping owners turn stabilized assets into top-performing communities—from unit interior rehabs to full exterior modernizations and amenity overhauls. Whether you’re managing a stabilized Class B or C property ready for a value-add repositioning, or looking to enhance a Class A asset's appeal, now is the time to get ahead of the summer cycle.

Let’s talk about how we can support your goals this quarter and beyond.

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💰 Now Let's Follow the Money: Who’s Lending to Multifamily in Houston?

According to the Houston Business Journal’s ranking of multifamily lenders, the top firms moving capital into Houston right now include:

• Berkeley Point Capital ($259M in volume)

• Greystone ($109M)

• International Bank of Commerce ($101M)

  
  

If you're exploring capital improvement projects or refinancing, aligning with active lenders can speed up your path to execution. We always recommend bringing construction partners like us in early—so we can help you scope smart, realistic budgets from the start.

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🏘️ Spotlight: Houston’s Suburban Surge

As the urban core tightens, suburban submarkets are heating up—fast. The Houston Business Journal recently highlighted Park Place Flats, a brand-new 40-unit multifamily development in Waller County offering rents between $1,650 and $2,050. Projects like this are tapping into a growing tenant base priced out of the inner loop, while still demanding quality.

At NWC, we’re already working with clients to reposition and reimagine properties in fringe submarkets—where light upgrades can translate to big returns.

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🛠️ So What Should You Be Doing This Quarter?

Whether you’re an owner, regional, or leasing director, here’s our take:

• Evaluate your CapEx wishlist. With occupancy stable and rent growth holding, strategic upgrades can drive NOI without relying on market appreciation.

• Prioritize lease-up experience. In Class A and B communities, amenities and finishes are still the leasing tiebreaker.

• Act before the next construction wave. Supply is low—for now. Get ahead of the cycle with upgrades that improve retention and value.

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🔧 Let’s Build What’s Next — Together

At Northwest Construction Group, we specialize in bringing value-add and capital improvement projects to life across the Houston metro. Whether it’s full unit renovations, exterior facelifts, leasing office upgrades, or amenity overhauls, we deliver with precision, communication, and respect for your operational needs.

Let’s talk about how we can help you make smart construction moves in the remainder of 2025.

📞 Reach out today to schedule a site walk or request a proposal:👉 www.nwcgroupinc.com

Sources:

• Colliers Q1 2025 Houston Multifamily Market Report

• Houston Business Journal, “Top Multifamily Mortgage Lenders”

• Houston Business Journal, “Park Place Flats breaks ground in Waller County”

• CBRE Multifamily Snapshot Q1 2025