Key metrics for the Houston area multifamily sector recorded positive changes in June.
Over the year, the largest change in occupancy was noted for Class B properties for which occupancy increased by 1.5% to close at 89.79%. Occupancy for Class A properties went up by 1.4%, over the year, to close at 94.85%.
For all classes, marginal increases – over the month – were noted for average rental rates per square foot. The average for Class A, $1.201 per square foot, represented an increase of $0.004 compared to May. The average for Class B, $0.851 per square foot, represented an increase of $0.002 compared to the previous month.
Average rental rates per unit for Class A properties increased by $22.77 over the year to close at $1,140.99 per unit. This also represents the largest annual increase among the four classes. The Class B average increased by $15.98 over the year to close at $699.54 per unit.
12,486 units spread over 50 projects are in the construction pipeline. 16% of these (or 2,030 units) are currently pre-leasing.
Houston Apartment Market
Rent / Unit
Rent / SF
Monthly absorption in Houston was positive 779 units while annual absorption (rolling twelve months) totaled positive 10,621 units. 5,177 units are in the planning stage.
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O’Connor & Associates / Research & Consulting Group