April 2010

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Overall occupancy in the Houston area multifamily sector saw a very small increase during April, while occupancy among Class A properties decreased 0.13 percentage points, with the current occupancy at 89.04%. This is likely due to the significant amount of deliveries of new properties in the market during April. Houston performed best of the four major markets posting a substantial increase in rental rates, with Class A properties leading all classes in increases on both per unit ($5.20, $1,101.46) and per square foot ($0.006, $1.162) basis. Additionally, absorption posted positive figures both on a monthly and annual basis, while completions (1300+ units) during the month added a significant amount of units to the current supply. With all these metrics in consideration, the indication is that the market will likely remain steady and continue on a positive path.

Houston apartment market occupancy increased 0.05 points in April to 86.08%. Occupancy is down 1.62 points over the last year.  Average rents per square foot increased by $0.002 per square foot and are up $0.006 per square foot since April 2009.  Average rent per unit increased $2.21 in April to $759.55, which represents an annual increase of $8.49.  Monthly absorption was positive 1,577 units, while annual absorption (rolling twelve months) totals positive 1,856 units.

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