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McAllen Apartments Show Positive Rent Growth
The McAllen-Edinburg-Mission MSA posted positive rent growth at approximately 1.7% as the third quarter ended, according to NAI Rio Grande Valley’s Brad Frisby. He noted, though, that concessions have impacted effective rent growth.
Year-to-date apartment deliveries have totaled 1,488 units, surpassing the total units built in all of 2019. These deliveries were split fairly evenly between conventional and four-plex properties. “With some developments near completion, we could see over 2,000 units built in 2020,” Frisby writes.
He noted that absorption will be the key in 2021 and will signal developers for future projects going into 2022. “There are some projects in pre-development stage, but time will tell which actually pour concrete.
“Nationally, there has been a large increase in non-construction loans that are in nonaccrual status,” he points out. “Even though these nonperforming loans may not be in the McAllen MSA, they could have an impact on credit availability.”
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