September 2014

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Market Summary

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

  • Occupancy figures for the classes recorded both positive and negative changes over the month. Class A recorded a decrease of 0.28% from previous month. The average went down by 1.50% over the year for Class A properties. The largest annual increase was noted for Class C properties with an average increase of 0.38% to close at 89.31%.

  • 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 $0.001 per square foot over previous month. The largest monthly increase was noted for Class C properties reporting an increase of $0.003 per square foot. The largest annual increase was also noted for Class A properties, an increase of $0.041 per square foot to close at $1.29 per square foot.

  • Average rental rate per unit recorded a significant change for all classes. Class A properties reported an increase of $2.14 per square foot. On a year-on-year basis the average for Class A properties went up by $38.95 to close at $1,227.53 per unit, which is the largest yearly increase among all classes.

  • 30,877 units are in the construction pipeline, spread over 110 projects. 22.11% of the pipeline is currently pre-leasing.

Houston Apartment Market Key Metrics

 Occupancy

91.79%

 Rent / Unit

$849.27

 Rent / SF

 $0.982

 Monthly Change

-0.09%

 Monthly Change

+$2.29

 Monthly Change

 +$0.002

 Annual Change

-0.35%

 Annual Change

+$33.78

 Annual Change

+$0.038

Monthly absorption in Houston was positive 615 units, while annual absorption (rolling twelve months) totaled to positive 6,961 units. 11,722 units are in the planning stage.

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


 


 

 

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