Why is Rent So High in Houston?

“Why is rent so high in Houston?” As a licensed Realtor® in Houston, that’s a question I get all the time from my clients. It’s very common for rent prices in large city markets like Houston to be much higher than in surrounding communities. Part of that is simply that there are a lot of people who want to live in the city of Houston, both to eliminate their commute times and enjoy the many wonderful amenities the city has to offer. But the reasons why rent is so high in Houston right now go a little deeper than that. 

I specialize in helping renters in Houston find houses and apartments inside the 610 Loop. In most cases, that’s where rents in Houston are highest. In my experience, there are four main reasons why rent is so high in Houston right now. Keep in mind that there are still affordable apartments in Houston. I help people find them every day! But there’s no question that rents rose over the last several years. 

Here are my top 4 reasons why rent is so high in Houston!

1. It’s a sellers’ market, so renters don’t buy.

At this point in time, home sales in Houston favor the seller, not the buyer. In most cases, houses for sale inside Houston’s 610 Loop receive multiple offers and often sell for over list value. As a result, more renters are hesitant to take the plunge and buy a home. They’re concerned they’ll overpay, and that is certainly a possibility. But when more renters are hesitant to buy, that means they continue to rent. When more people continue to rent, the competition for affordable apartments in Houston goes up! 

Related: How To Rent A House in Houston

2. Demand currently outstrips apartment supply.

This second reason why rent is so high in Houston is related to the first. A LOT of people want to rent an apartment in Houston. Although new apartment communities are going up all the time, demand for apartments in Houston is currently greater than the supply of apartments. This is especially true in Houston’s most popular neighborhoods. As a result, landlords can charge more rent because they have a very large pool of customers from which to pick and choose. 

3. Crisis-related uncertainty causes renters to stay put.

Whether it’s the pandemic, inflation, overseas conflict, flooding, or some other crazy thing, it seems like there is always another crisis to be dealt with. Anytime a crisis arises, renters are more likely to stay put than to take a risk on a new home. In recent years, there has been crisis after crisis, leading to more renters keeping their apartments instead of looking for a new place. That means rentals in Houston become available less frequently.

4. Relocations from higher-priced, out-of-state markets can pay more.

Due to its growing economy and improving amenities, Houston is one of the fastest-growing cities in America. Many of the people moving to Houston are coming from other cities in other states where rents are EVEN HIGHER than rent in Houston. Many of these people are relocating for better jobs with better salaries, so they don’t bat an eye when they pay less for an house or apartment rental in Houston than they did where they used to live. It doesn’t matter if the rent seems very high to Houstonians. Compared to New York or Los Angeles, for example, the rent here doesn’t seem so bad! 

Related: The Top 10 Must Haves For Houston Renters

Will the average rent price ever fall in Houston? I don’t know the answer to that question. No one does! It would require Houston’s growth to slow significantly, which hasn’t happened in years. 

If the rent is too high, what should I do?

When rent prices for the homes where you want to live start to get uncomfortably high, I always recommend looking into buying a home. Often, you can achieve a monthly mortgage payment that costs less than your monthly rent! When demand for housing is at its highest, you may be forced to choose between overpaying for a home or overpaying on rent. If you’re overpaying for a house, at least you’ll eventually own it! Overpaying for rent doesn’t have any real benefits. I help clients buy homes they can afford in Houston every day.  

If you’re set on renting, though, there’s good news! There are still plenty of affordable apartments in Houston. Most people just need help finding them. That’s what we do best at Angel Fultz Realty! Contact us today for a free consultation on your options for renting in Houston. We can help you find a place to live that has the amenities you want at a price you can afford.