Apt. Rents Likely to Rise But Damage is Less

A flooded car is shown in front of a multifamily property after Harvey (credit: Foundation Insurance Group).

HOUSTON—In 2001, when Tropical Storm Allison hit, rents rose 6.1% that year. In 2005, with the exodus from New Orleans due to Hurricane Katrina as well as Hurricane Rita locally, rents rose 5.9%. In 2008, Hurricane Ike sent rent levels up by 5.7%.

After Harvey, multifamily rents that were clocking in at -0.2% during the last 12 months will likely spike just from the mere cessation of any specials. The overall average effective rent per month rose by $15 to $999 from $984 pre-Harvey. It is too soon to tell how long the rent spikes will remain given that the repair period may range anywhere from three to 12 months, Bruce McClenny, president of ApartmentData.com, tells GlobeSt.com.