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Slowing Multifamily Delivery Doesn’t Mute Demand

Tariffs and other trade-related concerns have created price pressures on new development due to increased input costs, but a positive outlook remains for the Houston metro, with a strong hiring spread.

Ryan Epstein Epstein says this is a story of recovery as Houston is one of the top US job creation cities.

HOUSTON—With 5% year-over-year rent growth, Houston ranks one of the top rent growth markets in the country, second just behind Tucson (5.1%). In addition, multifamily absorption was almost twice that of deliveries in the first half of 2018, reversing a trend from previous years, according to a Berkadia second quarter multifamily report covering both Houston and U.S.

Other highlights of the report indicate that 7,107 apartment units have been absorbed year to date compared to the 3,836 units that been delivered so far in 2018. Moreover, effective rents increased 5% year-over-year to $1,031 and the area’s occupancy rate rose to 89.9%, up 100 bps since second quarter 2017.

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Lisa Brown

Lisa Brown

Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.

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