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

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

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.

July 9, 2025 - Diana Ionescu

Map of Haussmann's redesign of Paris in the 1850s through 1870s under Napoleon III.

In Urban Planning, AI Prompting Could be the New Design Thinking

Creativity has long been key to great urban design. What if we see AI as our new creative partner?

June 30, 2025 - Tom Sanchez

View from inside car's driver seat while driving.

Car Designs Make it Harder to See Pedestrians

Blind spots created by thicker pillars built to withstand rollover crashes are creating dangerous conditions for people outside vehicles.

15 minutes ago - Bloomberg CityLab

Red and white "Wildfire Evacuation Route" sign on signpost.

Cal Fire Chatbot Fails to Answer Basic Questions

An AI chatbot designed to provide information about wildfires can’t answer questions about evacuation orders, among other problems.

July 10 - The Markup

Protester at Echo Park Lake, Los Angeles holding sign that says "Housing is a human right"

What Happens if Trump Kills Section 8?

The Trump admin aims to slash federal rental aid by nearly half and shift distribution to states. Experts warn this could spike homelessness and destabilize communities nationwide.

July 10 - Shelterforce Magazine

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.

Home and Land Services Coordinator

Appalachian Highlands Housing Partners

Associate/Senior Planner

Gallatin County Department of Planning & Community Development

Senior Planner

Heyer Gruel & Associates PA