Home > multifamily, Uncategorized > Apartment demand increases with economy

Apartment demand increases with economy

Houston’s booming economy is boosting demand for apartments, pushing up rents and encouraging new construction across the city.

Exterior shots of the Hanover Rice Village apartments’ street level retail
stores, Tuesday, March 26, 2013, in Houston. ( Nick de la Torre / Chronicle )
Photo: Nick De La Torre, Staff / © 2013 Houston Chronicle

 

Developers, who lay low during the slowdown, now are building 60 new complexes across the city. Nearly as many are proposed.

Many of the new properties will come with heaps of amenities like catering kitchens, yoga studios and dog parks.

While Houston still has plenty of affordable, garden-style apartment complexes, some of the new projects are pushing height and price limits.

Last year, a local developer started construction on a 40-story residential tower near River Oaks. The project is expected to be the tallest apartment tower in Houston, and a 1,500-square-foot unit could rent for $4,000.

Robust employment, largely driven by the oil and gas industry, is fueling much of the growth.

“We’ve now got more jobs than we had post-recession,” Ed Cummins, senior vice president of multifamily services for Transwestern, recently said.

The location of many of the proposed projects reflects the growth of the city.

Builders have blueprints for new complexes inside the Loop, the Memorial area, Katy and The Woodlands.

Those areas, as they are home to some of Houston’s biggest energy companies, are experiencing tremendous growth.

With the increased demand, rents have been rising.

The average apartment rents for $811 per month, up 5.2 percent over a year ago, according to recent data from Apartment Data Services. The average monthly rent for a high-end unit is up 7.6 percent to $1,428.

Occupancy across all units is close to 90 percent.

Reprint from Houston Chronicle            By Nancy Sarnoff

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Categories: multifamily, Uncategorized
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