June 2014

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Market Summary

  • Key metrics for the Houston area multifamily sector recorded both positive and negative changes in June 2014.

  • Occupancy figures for the classes recorded both positive and negative changes over the month. Class A recorded an increase of 0.13% from previous month. The average went down by 0.90% over the year for Class A properties. The largest annual increase was noted for Class C properties with an average increase of 1.64% to close at 89.49%.

  • The average rental rates per square foot reportedly had marginal changes for all classes for the month. Rental rates for Class A reported increase by $0.005 per square foot over previous month. Class B and Class C properties reported the largest monthly increase of $0.003 per square foot respectively. The largest annual increase was noted for Class A properties, an increase of $0.044 per square foot to close at $1.28 per square foot.

  • Average rental rate per unit recorded a significant change for all Classes. The largest monthly increase was noted for Class A properties with an average increase of $4.93 per square foot. On a year-on-year basis the average for Class A properties went up by $39.89 to close at $1,216.07 per unit, which is also the largest yearly increase among all classes.

  • 19,424 units are in the construction pipeline, spread over 70 projects. 37.54% of the pipeline is currently pre-leasing.

Houston Apartment Market Key Metrics

 Occupancy

92.14%

 Rent / Unit

$839.81

 Rent / SF

 $0.972

 Monthly Change

+0.10%

 Monthly Change

+$3.73

 Monthly Change

 +$0.004

 Annual Change

+0.37%

 Annual Change

+$34.56

 Annual Change

+$0.040

Monthly absorption in Houston was positive 693 units while annual absorption (rolling twelve months) totaled to positive 8,324 units. 11,426 units are in the planning stage.

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O’Connor & Associates / Research & Consulting Group
Houston: 713-686-9955  


 


 

 

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