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Houston Apartment Market Update – December 2012

February 19, 2013 Leave a comment Go to comments

Market Summary

houston_histor_rents_11-12

houston_histor_occu_11-12

  • Key metrics for the Houston area multifamily sector recorded mostly positive changes in December 2012.
  • Occupancy figures recorded both positive and negative changes for all classes. Over the month, Class A, Class C and Class D properties recorded a decrease of 0.44%, 0.11% and 0.23% respectively. For Class B properties the average went up by 0.09% over the month, and on a year-over-year basis it increased by 2.44% to close at 90.57%. Class C properties recorded the largest increase over the year; the average went up by 2.71% to close at 85.98%.
  • No major changes were noted in the average rental rates per square foot for all classes except for Class B and Class D properties. For Class A and Class C properties, the average remained constant over the month. On a year-on-basis the average for Class A properties increased by $0.035 to close at $1.223 per square foot.
  • Average rental rates per unit recorded significant changes, especially for Class D properties. The average recorded an increase of $1.22 per square foot over the month. For Class A, the average went down by $0.40 over the month and by went up by $32.29 over the year to close at $1,159.97 per unit. The average for Class B properties went up by $0.73 over the month to close at $707.62 per unit.
  • 12,730 units are in the construction pipeline, spread over 48 projects. 8.1% of the pipeline is currently pre-leasing.

Houston Apartment Market Key Metrics

Occupancy

90.35%

Rent / Unit

$793.85

Rent / SF

$0.918

Monthly Change

-0.15%

Monthly Change

+$0.38

Monthly Change

$0.000

Annual Change

+2.03%

Annual Change

+$19.13

Annual Change

+$0.022

Monthly absorption in Houston was positive 238 units while annual absorption (rolling twelve months) totaled positive 13,794 units. 5,571 units are in the planning stage.

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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