Home > Market Updates, multifamily > Houston Apartment Market Update – November 2011

Houston Apartment Market Update – November 2011

  

Market Summary

  • Key metrics for the Houston area multifamily sector were positive in November. Rental rates per unit saw significant upward movement.
  • Overall occupancy recorded a marginal decrease for this sector as well. Class A occupancy stood at 93.5%, a decrease of 0.11% over the month but an increase of 1.9% over the year. Class B properties recorded positive change both over the month and over the year to close at 93.5%.
  • All classes recorded increases in the average rental rate per square foot. The average for Class A properties increased by $0.002 over the month to close at $1.185 per square foot. The Class B average stood at $0.839 per square foot, an increase of $0.002 over the month. The averages for Classes C and D also went up by $0.002 over the month.
  • Class B properties recorded the largest change over a 12-month period in rental rates. The average rental rate per unit recorded in November ($689.23) represents an increase of $7.49 over the year. The average for Class A ($1,126.09) represents a change of $6.84 over the year.
  • 7,419 units spread over 33 projects are in the construction pipeline. Seven of these projects are currently pre-leasing.

Monthly absorption in Houston was negative 63 units, while annual absorption (rolling twelve months) totaled positive 8,927 units. 4,488 units are in the planning stage.

Houston Apartment Market Key Metrics

 Occupancy

 88.31%

 Monthly Change

-0.09%

 Annual Change

+1.19%

 Rent / Unit

$773.94

 Monthly Change

+$1.72

 Annual Change

+$6.54

 Rent / SF

$0.895

 Monthly Change

+$0.002

 Annual Change

+$0.008

 

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