Home > Market Updates, Uncategorized > Houston Apartment Market Update – Sept 2010

Houston Apartment Market Update – Sept 2010

October 30, 2010 Leave a comment Go to comments

All key metrics in the Houston area multifamily sector continued to display positive measures for the sixth consecutive month in September. Monthly absorption of over 2,000 units paved way for a 30 basis point increase in metro area occupancy and over a 73 basis point increase in Class A occupancy.

Rental rates per unit for Class A properties continued to rise during the month increasing by $0.17 over August to $1,114.78, while average rates per square foot for the class remained unchanged at $1.172. However, the construction pipeline of almost 6,000 units, the highest among all four Texas markets, remains a significant concern.

With over 39% of those communities currently pre-leasing and more than 1,500 units expected to deliver in the coming month, expect overall occupancy to decline and rental rates to increase during October.

Houston apartment market occupancy increased 0.30% points in September to 87.28%. Occupancy is up 0.55% points over the last year.

Average rents per square foot increased by $0.001 in September, and are up $0.008 over September 2009. Average rent per unit decreased $0.02 in September to $765.40, which represents an annual increase of $9.97.

Monthly absorption was positive 2,074 units, while annual absorption (rolling twelve months) totals positive 10,136 units.

Houston Apartment Market
Key Metrics

Occupancy     87.28%
Monthly Change + 0.30%
Annual Change + 0.55%
Rent / Unit $765.40
Monthly Change – $0.02
Annual Change + $9.97
Rent / SF $0.886
Monthly Change + $0.001
Annual Change + $0.008
Monthly Absorption + 2,074
Annual Absorption + 10,136
Units U/C 5,876
Units Planned 3,980

 

Info provided by O’Connor and Associates

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