Houston Rents are Up, Occupancy Rates Slightly Down
The Houston apartment market fundamentals are projected to return to historical averages this year. Occupancy rates are at 92.7%, down 90 basis points year-over-year. Rents average $1,358, up 2.4% YOY.
A recent Berkadia report stated that stakeholders can expect headwinds early in 2023 attributed to the development pipeline, with over 17,300 new units delivering this year. In spite of that, robust net migration and household growth should continue to fuel demand for Houston area apartments.
Developers continue to build Class A units in affluent submarkets. River Oaks, in the urban core, and Bear Creek, just north of the Energy Corridor, are among the top Houston submarkets for multifamily units under construction and are among the wealthiest. Renters in both submarkets are expected to generate enough demand to offset elevated deliveries, as favorable economic and demographic conditions position them among the submarkets with the highest anticipated net absorption this year.
Mike covers our Texas and Phoenix/Southwest regions. He is a veteran news reporter who spent 10 years in radio and television news, mostly in Tucson, Arizona. Following his career in the media, he spent ten years as a communications executive for a publicly traded development company. Mike is married with three boys and three Huskies.
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