Renting an apartment became noticeably more challenging across much of Texas in 2025, even as the state continued to outpace most of the country in new housing construction.
According to RentCafe.com’s Year-End Rental Competitiveness Report, demand surged in nearly every major Texas metro from January through September. The increase was driven largely by renters choosing to renew existing leases rather than relocate, limiting available inventory and intensifying competition even in markets with steady construction activity.
As a result, Rental Competitiveness Index (RCI) scores climbed across most Texas cities. The index evaluates rental pressure using factors such as occupancy levels, lease renewal rates, vacancy duration, applicants per unit and the share of new construction.
Houston saw the most pronounced increase in competition, with its RCI rising to 74 from 71.8 a year earlier. Lease renewals climbed to 62.1%, while new apartments represented just 1.84% of total inventory, down from 2.37%, tightening the market further.
Fort Worth also experienced mounting pressure, with its RCI increasing to 72 from 71.2. Renewals reached 61.6%, while new construction slipped to 1.8% of total supply, reinforcing limited availability.
San Antonio followed a similar pattern, with its RCI climbing to 66.5 from 65. The number of applicants per vacant unit rose to seven, up from six, while renewals reached 57.3%, signaling growing demand.
Austin recorded a modest rise in competition, with its RCI inching up to 64.3 from 64. However, the city benefited from a significant influx of new apartments, which accounted for 8.2% of total supply — one of the largest increases in the state. That expansion helped offset demand, even as vacant units stayed on the market slightly longer.
Dallas stood out as the lone major Texas metro where renting eased somewhat. Its RCI dipped to 71.7 from 72.3. While lease renewals rose to 60.7%, a larger wave of new construction — 3.7% of total supply — provided added breathing room, extending average vacancy times.
Outside the major metros, rental competition intensified sharply in several smaller Texas cities. Lubbock emerged as one of the fastest-rising rental markets nationwide, with its RCI jumping 8.2 points to 82.4.
The surge was fueled by economic growth and record enrollment at Texas Tech University. Applicants per available unit more than doubled, average vacancy times shortened, and occupancy climbed above 94%, reflecting a highly competitive environment for renters.
Despite growing pressures, Texas renters still faced slightly less competition than the national average. Across the U.S., the RCI reached 75.2 in 2025, up from 74.4, as lease renewals climbed to 63% amid the addition of more than half a million new apartments nationwide.
On average, U.S. rental units filled in about 41 days and attracted roughly nine applicants per vacancy, according to the report, which analyzed 139 markets using data from Yardi Systems.
Looking forward, analysts expect rental competition to remain elevated into 2026, particularly during the peak summer leasing season. Nationally, renter demand could push applications per unit to new highs, even as a midyear influx of new apartments provides only temporary relief before construction activity slows again.
For Texas renters, the combination of strong population growth, high renewal rates and uneven construction gains suggests competition may remain a defining feature of the market in the year ahead.
Originally reported by Dallas Express in Yahoo.Com.
