Houston Apartment Market Update – January 2011
Most key metrics for the Houston area multifamily sector were positive in January.
Overall occupancy declined over the previous month with all classes except Class D recording a negative change.
Absorption was negative for the month with only Class A and Class D properties recording positive absorption.
Overall rental rates per square foot increase marginally over the month, with no change recorded for any class except for Class A which recorded an increase by $0.001 to close at $1.176 per square foot.
Overall average rental rates per unit posted an increase with Class A properties recording the most significant increase of $1.40 over the previous month’s average for that class.
Just under 35% of the construction pipeline is currently pre-leasing and no significant deliveries are expected in the coming month.
Houston apartment market occupancy decreased 0.12% points over the adjusted figure of the previous month to 86.71% in January.
Occupancy is up 1.36% points over the last year. Average rents per square foot increased by $0.001 over the month, and are up $0.003 over January 2010.
Average rent per unit increased by $1.02 to $768.41, while the average increased by $6.24 over January 2010.
Monthly absorption was negative 294 units, while annual absorption (rolling twelve months) totals positive 12,026 units.
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Houston Apartment Market |
|
| Occupancy | 86.71% |
| Monthly Change | - 0.12% |
| Annual Change | + 1.36% |
| Rent / Unit | $768.41 |
| Monthly Change | + $1.02 |
| Annual Change | + $6.24 |
| Rent / SF | $0.888 |
| Monthly Change | + $0.001 |
| Annual Change | + $0.003 |
| Monthly Absorption | - 294 |
| Annual Absorption | + 12,026 |
| Units U/C | 4,164 |
| Units Planned | 3,867 |
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