Market Summary
- Key metrics for the Houston area multifamily sector were positive in November. Rental rates per unit saw significant upward movement.
- Overall occupancy recorded a marginal decrease for this sector as well. Class A occupancy stood at 93.5%, a decrease of 0.11% over the month but an increase of 1.9% over the year. Class B properties recorded positive change both over the month and over the year to close at 93.5%.
- All classes recorded increases in the average rental rate per square foot. The average for Class A properties increased by $0.002 over the month to close at $1.185 per square foot. The Class B average stood at $0.839 per square foot, an increase of $0.002 over the month. The averages for Classes C and D also went up by $0.002 over the month.
- Class B properties recorded the largest change over a 12-month period in rental rates. The average rental rate per unit recorded in November ($689.23) represents an increase of $7.49 over the year. The average for Class A ($1,126.09) represents a change of $6.84 over the year.
- 7,419 units spread over 33 projects are in the construction pipeline. Seven of these projects are currently pre-leasing.
Houston Apartment Market Key Metrics
Occupancy
88.31%
Rent / Unit
$773.94
Rent / SF
$0.895
Monthly Change
-0.09%
Monthly Change
+$1.72
Monthly Change
+$0.002
Annual Change
+1.19%
Annual Change
+$6.54
Annual Change
+$0.008
Monthly absorption in Houston was negative 63 units, while annual absorption (rolling twelve months) totaled positive 8,927 units. 4,488 units are in the planning stage.
Quality real estate market data provides decision makers the information to make informed decisions. O’Connor & Associates has been providing market data since 1988. Timely, accurate real estate data also provides the information our real estate appraisers, consultants, and property tax consultants need. Our ability to research, analyze and interpret market trends is a major reason for why developers and acquisition experts rely on O’Connor & Associates for market studies, feasibility studies, rent studies, tax credit studies, project design guidance, property performance valuation and lease audits. O’Connor & Associates is an acknowledged source of trends in real estate investing and market activity. Lenders, appraisers, developers, investors, tenants and real estate brokers are just some of the real estate professionals who regularly need real estate market data. They seek timely raw data and summary statistics regarding the market and submarkets. O’Connor & Associates has been providing this information since 1988.
