October 2009

Click here to view as PDF.

Vacancy increased by 0.55% for the Houston area multi-family sector during the month of October, marking the highest rate of decline in occupancy in the thirteen month swoon. Overall, Houston occupancy has decreased by 3.0% during that time frame. While average rental rates continue to increase in the market area, this is attributed to the influx of new properties with higher average rental rates than the market on the whole and not increases in same store rents. Additionally, concessions continue to increase pushing effective rents down. With over 10,000 units still under-construction, the coming months are sure to continue this negative trend.

Houston apartment market occupancy decreased 0.55 points in October to 86.20%. Occupancy is down 2.90 points over the last year. Average rents per square foot increased to $0.881 psf, and are up $0.015 psf since October 2008. Average rent per unit gained $3.41 in October to $757.52, which represents an annual increase of $15.89. Monthly absorption totaled a negative 1,735 units, while annual absorption (rolling twelve months) was a negative 3,242 units.

To subscribe or unsubscribe to this update, please send an email to Scott Sherrill or call
1-800-856-REAL (7325) ext. 4264.

O’Connor & Associates / Research & Consulting Group
Houston: 713-686-9955   Dallas: 214-727-5673