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Despite having the lowest overall occupancy out of the four major Texas markets, the Houston area multifamily sector performed well during May, posting all positive key metrics. Although monthly absorption figures posted positive, in comparison to April’s metrics, the sector posted close to half the amount of absorbed units. Average rents per unit showed an increase across all properties with Class A properties increasing $0.85 and Class D properties increasing $4.20. While average rents per square foot recorded an increase of only $0.001 and $0.002, respectively. With over 60% of the construction pipeline currently pre-leasing, there could be a slight decline in occupancy among Class A and B properties, but expect the next month to continue the positive trend in key metrics.
Houston apartment market occupancy increased 0.15 points in May to 86.23%. Occupancy is down 1.24 points over the last year. Average rents per square foot increased by $0.002 per square foot and are up $0.007 per square foot since May 2009. Average rent per unit increased $0.93 in May to $760.53, which represents an annual increase of $8.35. Monthly absorption was positive 925 units, while annual absorption (rolling twelve months) totals positive 3,319 units.
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