Home > Market Updates > Houston Multifamily Apartment Market Update – August 2010

Houston Multifamily Apartment Market Update – August 2010

September 29, 2010 Leave a comment Go to comments

The Houston area multifamily sector had another overall positive month among key metrics. Class A recorded just over 91% occupancy enabling the market to maintain its upward trend in overall occupancy. Absorption continued to post positive figures on a monthly basis with Class B and Class C properties recording the largest absorption at 355 and 273 units, respectively.

Average rental rates for Class A properties have also been steadily rising since March of this year with average rates per unit increasing by $3.31 over July to $1,114.61 and average rates per square foot increasing by $0.003 to $1.172.

August didn’t see as many units delivered from the construction pipeline as expected, but with over 39% of those communities currently pre-leasing, and over 1,000 units poised to deliver in the coming months, the rise in rental rates is expected to continue paired with a slight decline in occupancy among Class A and B properties.

Houston apartment market occupancy increased 0.33 points in August to 86.98%. Occupancy is down 0.09 points over the last year. Average rents per square foot increased by $0.001 in August, and are up $0.007 over August 2009.

Average rent per unit increased $1.44 in August to $765.42, which represents an annual increase of $10.45. Monthly absorption was positive 1,855 units, while annual absorption (rolling twelve months) totals positive 6,627 units.

To see this graphically from O’Connor and Associates

http://www.poconnor.com/apartment_market_update/Houston_8-10.html

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Categories: Market Updates
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