May 2009
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The Houston area construction pipeline continues to diminish as units are delivered to market from under construction status and more planned communities are cancelled. As such, market area rents and occupancy continue to move in opposite directions, with Class A communities leading the way on both fronts. Year-over-year metrics indicate that Class A occupancy is down 2.35 points, while rent per square foot is up $0.021 and rent per unit is up $21.65. For the month, occupancy in Class A communities fared better than the other classes, only down 0.13%, compared to -0.29%, -0.22% and -0.28% for Class B, C and D communities, respectively.
Houston apartment market occupancy decreased 0.23 points in May to 87.43%. Occupancy is down 1.55 points over last year. Average rents per square foot increased $0.001 psf over the month, and are up $0.016 psf since May 2008. Average rent per unit gained $1.07 in May and $17.64 over the same period last year. For the month, absorption totaled a negative 492 units, while annual absorption (rolling 12 months) remains positive at 3,011 units.Houston Apartment Market
Key Metrics |
|
Occupancy |
87.43% |
Monthly Change |
- 0.23% |
Annual Change |
- 1.55% |
Rent / Unit |
$750.15 |
Monthly Change |
+ $1.07 |
Annual Change |
+ $17.64 |
Rent / SF |
$0.874 |
Monthly Change |
+ $0.001 |
Annual Change |
+ $0.016 |
Monthly Absorption |
- 492 |
Annual Absorption |
+ 3,011 |
Units U/C |
16,997 |
Units Planned |
10,192 |
 |
|---|
 |
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