Home > Market Updates, multifamily, Uncategorized > Houston Apartment Market Update – March 2013

Houston Apartment Market Update – March 2013

March 2013 rent chart

March 2013 Occupancy chart

Market Summary

  • Key metrics for the Houston area multifamily sector recorded mostly positive changes in March 2013.

 

  • Occupancy figures recorded both positive and negative changes for all classes. Over the month, Class A recorded a marginal increase of 0.10% to close at 94.86%. The largest monthly increase was noted for Class C properties (0.73%). For Class A properties the average went up by 0.73% over the month. The largest annual increase was also noted for Class C properties with an average increase of 3.05% to close at 86.73%.

 

  • Not much of changes were noted in the average rental rates per square foot for all classes for the month. Class B and Class C properties recorded an increase of $0.003 per square foot over the month. For Class A properties the average went up by $0.001 per square foot. On a year-on-year basis the average for Class A properties increased by $0.036 to close at $1.229 per square foot. On a monthly basis the rental rates for Class D properties decreased by $0.002 per square foot.

 

  • Average rental rates per unit recorded significant changes for all Classes. The average for Class A properties recorded an increase of $1.64 per square foot over the month. On a year-on-basis the average also went up by $35.09 to close at $1,167.70 per unit. The largest monthly increase was for noted for Class C with an increase of $2.73 per unit to close at $602.63 per unit. On a monthly basis the rental rates for Class D properties decreased by $1.15 per unit.

 

  • 12,115 units are in the construction pipeline, spread over 45 projects. 9.2% of the pipeline is currently pre-leasing.

Houston Apartment Market Key Metrics

Occupancy

91.01%

Rent / Unit

$798.90

Rent / SF

$0.924

Monthly Change

+0.42%

Monthly Change

+$2.13

Monthly Change

$0.003

Annual Change

+2.01%

Annual Change

+$19.97

Annual Change

+$0.023

Monthly absorption in Houston was positive 2,593 units while annual absorption (rolling twelve months) totaled positive 13,857 units. 5,586 units are in the planning stage.

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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