Richard Zigler, research director for Houston-based O'Connor & Associates, tells GlobeSt.com that he expects that number to double again by the end of the second quarter. Is this a sign of a recovery? The spring and summer months will tell the tale on the predicted recovery, he says. Winter months historically are slow for multifamily absorption. If the summer turns out well, the market may be on track to return to the 2,500- to 5,000-unit quarterly absorption of the last few years.

Class A and C absorbed virtually all of the units, according to Zigler's numbers. Class A absorbed 553 units and class C, 626 units. Class B registered a mere two units while class D's performance totaled just 46. The city's inventory contains about 500,000 units.

Despite low absorption, occupancy remains stable at a healthy 93.01%, down only slightly from fourth quarter 2001's 93.17%. Zigler attributes the healthy rate to a well-balanced supply and demand. He points out the city has restrained the pace of development to meet the demand. Rental rates stayed even with December 2001 at 74 cents per sf, in keeping with its moderate growth in recent years.

Zigler says Houston's market overall is pretty strong, especially when stacked up against other metro markets. And, he says, recovery will come about as consumer confidence recovers from terrorism, Enron, Tropical Storm Allison and the like. In Zigler's words, the message is "the sky isn't falling.