Apartments Make a Comeback in Energy-Centric Areas

Demand is increasing for Energy Corridor multifamily, including The Heights at Park Row.

HOUSTON—An increase in demand for apartments in Houston’s energy-centric areas–including the Energy Corridor–is being driven by an increase in jobs and a shrinking pipeline of new apartment construction, according to Wolff Companies. This construction slowdown has helped the market right itself. According to CBRE, 7,800 units are currently under construction with most scheduled for completion within the next two years. CBRE data shows multifamily permits dropped 83% from a record-high third quarter in 2014.

Multifamily absorption is the highest in the Energy Corridor, Katy, The Woodlands and Spring, TX according to Apartment Data Services. Thousands of units built in recent years are predicted to be absorbed this year, and nearly 11,000 new apartment units have been absorbed already in the first half of the year. For comparison, Houston had about 4,500 apartments absorbed in all of 2016, according to Bruce McClenny, president of Apartment Data Services.