Home > Uncategorized > Houston Apartment Market Update – April 2011

Houston Apartment Market Update – April 2011

The Houston area multifamily sector recorded positive metrics in April, but did not change significantly over the previous month.

While Houston was second only to New York in the number of multifamily permits (5,169) received in 2010*, the market continues to struggle with occupancy and rental rates.

Overall occupancy improved marginally, while remaining under 88% — a figure last achieved in March 2009.

Although Class A occupancy crossed 93% for the first time, rental rates did not increase in a corresponding fashion; rental averages recorded significant decreases (-$0.001 per square foot to close at $1.175 and -$1.19 per unit to close at $1,117.07).

The overall rental average per square foot has remained unchanged since January, and the per unit average has continued to decrease.

Signaling rising demand, absorption came down for all classes with Class A numbers down 50% from March. Of the approximate 4,000 units under construction, more than 50% are currently pre-leasing.

The more than 400 units that are expected to be delivered in May are almost evenly split between Class A communities and Class B Senior Tax Credit communities.

Because of this, the metrics should remain on a stable path. (*According to BuilderOnline.com).

Houston apartment market occupancy increased 0.30% points over the adjusted figure of the previous month to 87.80% in April and increased by 1.78% points over April 2010.

Average rents per square foot remained unchanged compared to March, and are up $0.006 over April 2010.

Average rent per unit decreased by $0.23 to $767.85, while the average increased by $7.57 over April 2010.

Monthly absorption was positive 2,074 units, while annual absorption (rolling twelve months) totals positive 3,141 units.

Houston Apartment Market
Key Metrics

Occupancy

    87.80%

Monthly Change

+ 0.30%

Annual Change

+ 1.78%

Rent / Unit

$767.85

Monthly Change

– $0.23

Annual Change

+ $7.57

Rent / SF

$0.888

Monthly Change

Annual Change

+ $0.006

Monthly Absorption

+ 2,074

Annual Absorption

+ 11,827

Units U/C

4,127

Units Planned

3,141

 

O’Connor & Associates — Your Key to Real Estate Success
Corporate Office:
2200 North Loop W., Suite 200
Houston, TX 77018
1-800-856-7325

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Categories: Uncategorized
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