Lubbock Rental Market Report
July 2026: Strong Leasing Activity, but Vacancy Pressure Remains
July was the busiest leasing month of 2026. Rental demand remains present, but the market’s 55-day average leasing timeline shows that renters still have choices and owners must remain competitive.
Monthly Leasing Trend
July Reached the Highest Leasing Count of the Year
July turned out as expected as one of the strongest leasing months of the year. Summer leasing activity is normally strongest during this part of the cycle, so the increase itself is not unusual. What is encouraging is that July completed almost 21% more leases than July 2025.
Renter demand is active, and we are seeing the level of activity that is typical for July. At the same time, the higher average Days on Market suggests that some of the properties closing in July had already been available for quite some time. In other words, stronger demand helped the market burn through some older inventory. That is a positive sign, but it is not enough for us to call this a broader market shift.
Properties Leased by Month
January through July 2026
Rental Rate Trend
Rent Improved, but Growth Has Not Been Linear
The average leased rent increased to $1,442 in July, which was about $33 higher than July 2025. Overall, rents are up, but the increase has not followed a perfectly straight line from month to month.
April still holds the highest average rent of the year at $1,496. That type of fluctuation is normal because the mix of homes leasing each month changes. July’s result is still positive and supports the broader trend that rents have improved compared with last year.
Average Leased Rent
Monthly average, January through July 2026
Vacancy and Leasing Speed
Days on Market Remains the Most Important Warning
Our goal is to keep average Days on Market at 36 days or less. That represents roughly a 10% vacancy rate and gives owners a practical benchmark for evaluating leasing performance.
Average DOM has improved from the slower part of the year, which is expected during a stronger summer leasing cycle. Even with that improvement, July averaged 55 days, so the market is still well above where it needs to be.
July also produced more completed leases than new properties brought to market, and available inventory declined. Both are positive signs. However, the market remains saturated enough that controlling Days on Market must remain the priority. Aggressive pricing, strong property condition and quick adjustments are still the most effective ways to protect rental income.
Average Days on Market
Lower is better. Target: 36 days or less.
How Long Completed Leases Spent on the Market
Share of completed leases by DOM range. Based on close date.
Pricing, Condition and Leasing Speed
What Leasing Speed May Tell Us About Rent Performance
The July results do not show that the lowest-priced properties always lease first. In fact, the homes that took 37 to 55 days produced the highest average rent at $1,476. That may represent a small group of owners who started near the top of the market and were willing to wait a little longer to reach a higher rent.
Whether that strategy produced a better overall return is less clear. The chart compares monthly rent, but it does not account for the income lost during additional vacancy. A higher rent can still produce less annual income when the property remains vacant for several extra weeks.
The strongest pattern appears after 55 days. Properties taking 56 days or longer leased below both the July market average and the market median. The year-to-date data follows the same general pattern, with the longest-market properties producing the lowest average and median rents.
July Average Rent by Leasing Timeline
Actual leased rent compared with the overall July average and median.
| Days on Market | Leases | Share of July Leases | Average Rent | Median Rent | Compared with Market Average |
|---|---|---|---|---|---|
| 36 days or less | 193 | 50.8% | $1,455 | $1,475 | +$12 |
| 37 to 55 days | 60 | 15.8% | $1,476 | $1,500 | +$33 |
| 56 to 65 days | 23 | 6.1% | $1,392 | $1,425 | -$51 |
| 66 days or more | 104 | 27.4% | $1,411 | $1,430 | -$31 |
Roughly two-thirds of the properties that leased within 36 days were in zip codes outside Loop 289, including 79423, 79424, 79416, 79407 and 79382. This suggests stronger demand in many of Lubbock’s newer-growth areas, although location alone does not explain every result.
The fastest-leasing homes were somewhat newer on average, but newer properties also appeared in the longest DOM category. Age helps provide context, but it is not a reliable explanation by itself.
MLS data can show price, location, age and leasing time, but it cannot fully measure how updated or well maintained a home was. In practice, a property that does not lease usually has a pricing issue, a condition issue or a combination of both.
Anecdotally, well-presented homes at the top of the market often lease very quickly. Properties asking a top-of-market rent without the condition to support it can sit for a long time before the owner adjusts the price or improves the property.
In a saturated rental market, owners cannot rely on pricing alone. Homes that are treated strictly as rentals and allowed to become dated will usually face more competition and longer leasing times. Improving an existing property may currently offer a better return than purchasing another property at today’s prices. We will explore that investment question in a separate market analysis.
Year-to-Date Comparison
More Leases and Higher Rent, but No Improvement in Leasing Speed
Through July, the Lubbock market completed 1,827 leases, an increase of approximately 8.9% from the same period in 2025. Average rent increased 1.8%, and average rent per square foot increased 4.6%.
| Metric | 2026 YTD | 2025 YTD | Change |
|---|---|---|---|
| Properties Leased | 1,827 | 1,678 | +8.9% |
| Average Leased Rent | $1,438 | $1,413 | +1.8% |
| Average Rent / Sq. Ft. | $1.04 | $0.99 | +4.6% |
| Average DOM | 58 days | 57 days | +1 day |
The year-to-date numbers confirm the broader trend. Lubbock is producing more completed leases and slightly higher rental income, but increased activity has not shortened the average leasing timeline.
Zip-Code Performance
79423 Produced the Best Overall July Performance
To identify meaningful results, we only considered zip codes with at least 10 completed leases.
Zip code 79423 recorded 50 leases, an average rent of $1,546 and an average DOM of 31 days. It was the only qualifying zip code below the 36-day target.
Zip code 79382, primarily representing Wolfforth, produced the highest qualifying average rent at $1,890 with an average DOM of 38 days.
Selected Zip Codes: Average DOM
Qualifying areas with at least 10 completed leases
79423
50 leases, $1,546 average rent and 31 average DOM.
79382
20 leases, $1,890 average rent and 38 average DOM.
79407
57 leases and $1,614 average rent, but 67 average DOM.
Property Type Trend
Three-Bedroom Homes Continue to Drive the Market
Three-bedroom homes will continue to be the leading indicator for the Lubbock rental market. They have historically been the most common rental type in the area, and there are simply more of them available. In July, three-bedroom properties accounted for 232 of the 380 completed leases.
Two-bedroom homes followed, which makes sense given the number of older rental houses with two bedrooms and the growing trend of builders adding two-bedroom duplexes. Four-bedroom homes make up a smaller part of the market, but they continue to perform well, with higher rents and lower Days on Market than the three-bedroom category.
Four-bedroom demand may also become more important as household needs change. Families may need room for aging parents, adult children or college graduates who are taking longer to establish themselves after school. Square footage alone does not always meet that need. An additional bedroom can give households flexibility that a smaller floor plan cannot.
| Bedrooms | Properties Leased | Average Rent | Average DOM |
|---|---|---|---|
| 1 Bedroom | 22 | $726 | 89 days |
| 2 Bedrooms | 83 | $1,060 | 46 days |
| 3 Bedrooms | 232 | $1,552 | 57 days |
| 4 Bedrooms | 41 | $2,022 | 47 days |
Local Development Watch
Upland Avenue Improvements Reflect Continued West Lubbock Growth
In July, the City of Lubbock broke ground on a project to expand Upland Avenue between 34th Street and 50th Street from a two-lane road into a five-lane corridor. The project includes drainage improvements, sidewalks and other safety upgrades.
City leaders connected the project directly to continued residential and commercial growth in west Lubbock. Better infrastructure can support future development and improve access to nearby neighborhoods.
For rental owners, that growth can be positive over the long term. However, new development can also add competing rental inventory. That makes it important to distinguish between a growing area and a market where every property can support the same rent.
Potential Market Impact
What west-side infrastructure can mean for rental owners
Improved Access and Growth
Transportation and drainage improvements can support neighborhood desirability and future development.
Additional Rental Competition
New residential development can increase supply and place pressure on rents and leasing timelines.
Owner Strategy
What Rental Property Owners Should Do Now
Review Activity Early
Evaluate online traffic and showing activity during the first 10 to 14 days. Do not wait until the property reaches the market average.
Protect Effective Income
A small rent increase can be erased quickly by several additional weeks of vacancy. Focus on annual income, not only advertised rent.
Compare Current Competition
Pricing should reflect the homes renters can choose from today, including condition, pet policies, incentives and newer construction.
Final Takeaway
Demand Is Present, but Demand Is Selective
July was the busiest leasing month of 2026, and the market completed substantially more leases than it did during July 2025. Average rent and rent per square foot also improved.
The concern remains the 55-day average leasing timeline. Strong properties can still lease quickly, but owners must make sure pricing and condition are competitive before extended vacancy begins reducing annual returns.
Local Experience. Professional Management.
Why Work With Coldwell Banker Residential Property Management?
Property ownership should build value without consuming your time. Our team combines local market knowledge, clear systems, useful technology, and responsive service to protect your investment and simplify the ownership experience.
Simplified Ownership
We coordinate marketing, tenant screening, rent collection, maintenance, and compliance.
Property Expertise
Our approach is tailored to single-family homes, multifamily communities, and each owner’s plan.
Clear Communication
Owners receive timely information about leasing, property condition, and financial performance.
Useful Technology
Online portals, reporting systems, and marketing tools support efficient property operations.
Responsive Service
Technology supports the process, while attentive and accountable service remains the priority.
Local Market Strategy
Recommendations are grounded in current Lubbock rent, days on market, property condition, and neighborhood activity.
Let’s Talk About Your Property
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Schedule Time with Michael Fernuik →This representation is based in whole or in part on data supplied by the Lubbock Association of REALTORS® Multiple Listing Service. Neither the association nor its MLS guarantees or is in any way responsible for its accuracy. Data maintained by the association or its MLS may not reflect all real estate activity in the market.
