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Little Change in Houston Multifamily Market
“The Houston multifamily market is showing resilience, particularly in the luxury segment, where vacancy rates have decreased despite new supply pressures,” that’s according to Marcus & Millichap’s latest Houston Multifamily Market Report from 2Q 2024.
Among some of the insights:
- Houston’s vacancy rate in luxury-tier units decreased by 10 basis points year-over-year to 7.1 percent in March 2024, the only segment to record an annual contraction.
- Class C properties faced significant challenges, with vacancy rates rising by 100 basis points year-over-year to 8.3 percent, the highest first-quarter figure since 2017.
- The Houston metro area is expected to see only a slight increase in inventory, with 2024 deliveries projected just above the trailing decade average of 16,300 units.
- Average effective rent in Houston is projected to inch up to $1,372 per month in 2024, reflecting softening demand and rising vacancies.
- Despite a slowing job market, Houston is projected to have the second-largest employment addition nationally in 2024, with annual job growth remaining robust.
