Apartment hunting became notably more difficult in much of Texas in 2025, despite the state maintaining a lead in housing construction compared to other U.S. regions.
Demand for rentals surged in nearly every major metro area from January through September, driven largely by tenants opting to renew leases rather than move, which left fewer vacancies even in regions with solid building activity, according to RentCafe.com’s Year-End Rental Competitiveness Report.
The trend resulted in higher Rental Competitiveness Index (RCI) scores — a measure based on factors like vacancy duration, occupancy levels, applicants per unit, renewal rates, and new construction shares — for most key Texas cities.
Houston experienced the sharpest rise in competition, with its RCI climbing to 74 from 71.8 a year earlier. Lease renewals reached 62.1%, up from 60%, as fewer residents relocated, while new units accounted for only 1.84% of total supply, down from 2.37%.
In Fort Worth, the market remained constrained, posting an RCI of 72, up from 71.2. Renewals hit 61.6%, and fresh construction dropped to 1.8% of inventory from 2.5%.
San Antonio saw demand grow, pushing its RCI to 66.5 from 65. Applicants per vacant unit increased to seven from six, with renewals at 57.3%.
Austin’s competition ticked up slightly, to an RCI of 64.3 from 64, but a boost in new builds — representing 8.2% of supply, up from 6.5% and among the state’s largest gains — helped temper the squeeze. Vacant listings lingered for 41 days, compared to 38 previously.
Dallas stood out as the lone major metro where renting eased a bit, with its RCI falling to 71.7 from 72.3. Although renewals rose to 60.7%, expanded construction at 3.7% of supply — up from 2.8% — provided relief, extending average vacancy time to 41 days from 39.
Even in smaller Texas markets, pressures mounted.
Lubbock emerged as one of the nation’s fastest-rising spots for rental competition, with its RCI surging 8.2 points to 82.4. Driven by economic growth and record enrollment at Texas Tech University, applicants per unit doubled to 11 from five, units leased in 34 days on average — a day quicker than last year — and renewals edged to 60.9% from 60.1%, lifting occupancy to 94.2%.
Overall, while Texas markets grew tougher for renters this year, residents here still faced less intense competition than the U.S. average, where the national RCI hit 75.2, up from 74.4. Nationwide, lease renewals climbed to 63% amid the addition of over half a million new apartments, but units filled in about 41 days, with nine applicants on average.
The report, drawing from Yardi Systems data on large multifamily properties, ranked 139 U.S. markets using weighted metrics: 30% each for occupancy and renewals, 15% each for vacant days and applicants per unit, and 10% for new builds.
Looking to 2026, national trends suggest persistent competition, particularly in summer, with familiar supply-demand gaps potentially worsening.
Peak season could see 11 renter applications per unit — a recent high — though a midyear influx of new apartments might offer temporary ease before construction slows.
