Key metrics for the Houston area multifamily sector recorded significant positive changes on a year-on-year basis.
Class A occupancy stood at 93.7% in September which represents a 2% increase compared to the previous year. Class B occupancy increased by 1.1% to close at 88.3%.
The rental rates per square foot went up slightly when compared to August; the average for both Class A ($1.180) and Class B ($0.836) went up by $0.002 each. For the other classes, the average was unchanged.
Class A properties recorded the largest increases in average rental rates per unit. Over the month the average went up by $1.46 to close at $1,121.04; compared to September 2010, the average increased by $6.08.
7,143 units are in the construction pipeline, 21% of which are currently pre-leasing. 21 Class A communities and ten Class B communities are underway.
Houston Apartment Market
Rent / Unit
Rent / SF
Monthly absorption in Houston was positive 403 units, while annual absorption (rolling twelve months) totaled positive 9,386 units. 4,488 units are in the planning stage.
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O’Connor & Associates / Research & Consulting Group