Home > Market Updates, multifamily, Property Management, Uncategorized > Houston Apartment Market Update – June 2013

Houston Apartment Market Update – June 2013

Market Summary

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

June rents chart

Occupancy figures recorded positive changes for all classes over the month except for Class A. Over the month, Class A recorded a decrease of 0.13% to close at 95.07%. The largest monthly increase was noted for Class D properties (0.23%). For Class A properties the average went up by 0.23% over the year. The largest annual increase was noted for Class C properties with an average increase of 3.69% to close at 87.76%.

June rents chart

Not much of changes were noted in the average rental rates per square foot for all classes for the month. Rental rates for Class B and Class D properties recorded an increase of $0.002 per square foot over the month, while increasing by $0.001 per square foot for Class C properties. On a year-on-year basis the average for Class A properties increased by $0.041 to close at $1.242 per square foot. On a monthly basis, the largest increase was noted for Class A properties with an increase of $0.008 per square foot.

Average rental rate per unit recorded a significant change for all Classes. The largest monthly increase was noted for Class A properties with an average of $6.34 per square foot over the month. On a year-on-basis the average went up by $38.55 to close at $1,178.69 per unit.

12,067 units are in the construction pipeline, spread over 45 projects. 18.9% of the pipeline is currently pre-leasing.

June key metrics chart

Monthly absorption in Houston was positive 942 units while annual absorption (rolling twelve months) totaled to positive 13,897 units. 5,430 units are in the planning stage.

Please send an email to Scott Sherrill  at ssherrill@poconnor.com or call 1-800-856-REAL (ext. 4239).

O’Connor & Associates / Research & Consulting Gro up

Houston: 713-686-9955 http://www.poconnor.com / http://www.oconnordata.com

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