Key metrics for the Houston area multifamily sector recorded positive changes in May.
Over the month, occupancy increased by the same margin (0.45%) for both Class A and Class B properties to close at 94.61% and 89.73%, respectively. Over the year, the largest increase was noted for Class B properties; occupancy increased by 1.89% for this class.
Increases were noted in average rental rate per square foot for all classes except Class C properties. The average went up by $0.003 each, over the month, for Class A and Class B properties to close at $1.197 and $0.849 per square foot, respectively.
Average rental rates per unit also recorded significant increases for Class A and Class B properties. Both over the month and over the year, the largest increase was noted for Class A properties; the average went up by $2.78 over the month and by $20.28 over the year to close at $1,137.16 per unit. The average for class B went up by $2.55 over the month and by $14.36 over the year to close at $697.55 per unit.
12,230 units spread over 49 projects are in the construction pipeline. 11.7% of these (or 1,438 units) are currently pre-leasing.
Houston Apartment Market
Rent / Unit
Rent / SF
Monthly absorption in Houston was positive 2,379 units while annual absorption (rolling twelve months) totaled positive 12,582 units. 5,097 units are in the planning stage.
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O’Connor & Associates / Research & Consulting Group