Home > Market Updates, multifamily, Uncategorized > Houston Apartment Market Update March 2011

Houston Apartment Market Update March 2011

Key metrics in the Houston area multifamily sector recorded mostly positive changes in March. Occupancy increased for all classes with Class A properties recording occupancy at 92.8%. Overall absorption continued to be positive for the second consecutive month after recording negative figures from November through January. Over the month, average rental rates per square foot remained unchanged across all classes. Average rental rates per unit decreased for Class A and Class C properties by $0.59 and $0.43, respectively. With over 34% of the construction pipeline currently pre-leasing and no significant deliveries expected in the coming month, the sector’s key metrics should remain mostly positive in the coming month.

Houston apartment market occupancy increased 0.53% points over the adjusted figure of the previous month to 87.48% in March and increased by 1.46% points over March 2010. Average rents per square foot remained unchanged compared to February, and are up $0.008 over March 2010. Average rent per unit decreased by $0.07 to $768.11, while the average increased by $9.98 over March 2010. Monthly absorption was positive 11,560 units, while annual absorption (rolling twelve months) totals positive 20,032 units.

Houston Apartment Market
Key Metrics

Occupancy

    87.48%

Monthly Change

+ 0.53%

Annual Change

+ 1.46%

Rent / Unit

$768.11

Monthly Change

– $0.07

Annual Change

+ $9.98

Rent / SF

$0.888

Monthly Change

Annual Change

+ $0.008

Monthly Absorption

+ 11,560

Annual Absorption

+ 20,032

Units U/C

4,459

Units Planned

2,821

To subscribe or unsubscribe to this update, please send an email to Scott Sherrill or call
1-800-856-REAL (7325) ext. 4264.

O’Connor & Associates / Research & Consulting Group
Houston: 713-686-9955  

 

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