HOUSTON — (January 17, 2024) — The Houston rental market’s red-hot year ended 2023 with some December cooling, as demand – driven largely by buyers discouraged over elevated mortgage interest rates – slowed. 
According to the Houston Association of Realtors’ (HAR’s) December 2023 Rental Market Update, rentals of single-family homes fell 1.2 percent year-over-year with the average lease price climbing 2.4 percent to $2,207. A total of 2,986 leases were signed compared to 3,023 in December 2022. 
New listings of single-family rentals rose 12.1 percent in December, feeding a sufficient supply of homes into the pipeline to meet demand in the new year. Days on Market, or the actual number of days it took to lease a home, ticked up slightly from 36 to 38 days. 
“Lease properties had an incredible 2023 as they provided a critical alternative to buyers that were concerned about prices and mortgage rates but still needed housing,” said HAR Chair Thomas Mouton with Century 21 Exclusive. “While leases slowed a bit in December, we should see activity begin to pick up now that the new year is underway.”

The townhome/condominium rental market slowed in December. Leases of those properties fell 6.7 percent with 516 units leased compared to 553 last year. The average lease price rose 1.2 percent to $1,838. New listings surged 22.6 percent and Days on Market went from 41 to 46 days.