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

Houston Apartment Market Update – July 2013

September 24, 2013 Leave a comment Go to comments

Market Summary

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

June rents chart

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 0.10% to close at 94.97%. The largest monthly increase was noted for Class C properties (0.25%). For Class A properties the average went down by 0.07% over the year. The largest annual increase was noted for Class C properties with an average increase of 2.90% to close at 87.93%.

The average rental rates per square foot for all classes reportedly had marginal changes for the month. Rental rates for Class A and Class C properties recorded an increase of $0.004 per square foot over the month, while increasing by $0.003 per square foot for Class D properties. On a year-on-year basis the average for Class A properties increased by $0.0367 to close at $1.246 per square foot. On a monthly basis, the largest increase was noted for Class B properties with an increase of $0.007 per square foot.

Average rental rate per unit recorded a significant change for all Classes. The largest monthly increase was noted for Class B properties with an average of $5.15 per square foot. On a year-on-basis the average went up by $18.75 to close at $720.99 per unit. The largest annual increase was noted for Class A with an average increase of $35.50 per square foot.

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

 Market Key Metrics July 13 of 2013

 Monthly absorption in Houston was positive 543 units while annual absorption (rolling twelve months) totaled to positive 12,737 units. 5,430 units are in the planning stage.

Please send an email to Scott Sherrill     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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