Houston multifamily rental rates stabilize as the Fed curbs inflation

Bar chart of Houston multifamily rental rates versus the inflation rate

Houston’s multifamily rental rates have historically shown a modest upward trend. However, since Q1 2021, there has been an exponential increase due to heightened consumer demand, leading to an inflationary surge. This surge peaked at 10.2% in Q2 2022, resulting in an 18.5% rise in rental rates from $1,099 in Q1 2021 to $1,302 in Q1 2023. While multifamily assets have traditionally proven to be stable, they have not been immune to the impact of inflation. To counteract inflation, the Federal Reserve has increased the federal funds rate. These measures by the Federal Reserve have effectively tempered demand, subsequently dampening the flames of inflation and stabilizing rental rates.

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