Oil Bust: Houston's Housing Surplus is Driving Rents Down

With a multitude of new high-end apartment complexes coming online, Houston residents are reaping the rewards of lowered rents as landlords struggle to fill vacancies due to a slowing oil economy.

2 minute read

February 18, 2016, 6:00 AM PST

By jwilliams @jwillia22


Houston, Construction

Sandra Fernandez / Flickr

If there was ever a need for evidence that more housing units (even those at the high-end of the market) was good for renters, housing proponents can now point to Houston where a number of factors have combined to create a tenants market. Erin Mulvaney of the Houston Chronicle reports that the cooling oil economy in Houston has led to an oversupply of housing units, which in turn has left landlords sitting on empty units. The oversupply has created some unique opportunities for apartment hunters.

Austin Kroschel and Hayley Dippon feel like they are better off renting for now. They recently signed a lease for a new place before they tie the knot next month. The couple was pleased to see that rent for the complex on West Dallas Street dropped nearly $300 from when they were looking last spring.

During their search, they found leasing offices offering free months, waiving application fees and offering such incentives as free trash pickup. The couple came in under their projected budget with $1,350 a month for a one-bedroom apartment.

Developers are reacting to the changed market by scaling back on development, but at this stage they don’t foresee foreclosures on the horizon as happened during the Great Recession. Developers are holding out hope that higher end jobs in health care, hospitality and education will fill the gap left by the decline in employment in the oil industry.

Friday, January 29, 2016 in Houston Chronicle

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

June 11, 2025 - Diana Ionescu

Large crowd on street in San Francisco, California during Oktoberfest festival.

The Simple Legislative Tool Transforming Vacant Downtowns

In California, Michigan and Georgia, an easy win is bringing dollars — and delight — back to city centers.

June 2, 2025 - Robbie Silver

Rendering of Shirley Chisholm Village four-story housing development with person biking in front.

San Francisco's School District Spent $105M To Build Affordable Housing for Teachers — And That's Just the Beginning

SFUSD joins a growing list of school districts using their land holdings to address housing affordability challenges faced by their own employees.

June 8, 2025 - Fast Company

Bird's eye view of half-circle suburban street with large homes.

In More Metros Than You’d Think, Suburbs are Now More Expensive Than the City

If you're moving to the burbs to save on square footage, data shows you should think again.

8 seconds ago - Investopedia

Color-coded map of labor & delivery departments and losses in United States.

The States Losing Rural Delivery Rooms at an Alarming Pace

In some states, as few as 9% of rural hospitals still deliver babies. As a result, rising pre-term births, no adequate pre-term care and "harrowing" close calls are a growing reality.

June 15 - Maine Morning Star

Street scene in Kathmandu, Nepal with yellow minibuses and other traffic.

The Small South Asian Republic Going all in on EVs

Thanks to one simple policy change less than five years ago, 65% of new cars in this Himalayan country are now electric.

June 15 - Fast Company