(To read more on the multifamily market, click here.)

HOUSTON-A softening multifamily market in the third quarter is adirect contrast to the surge in activity last year at this time asHurricane Katrina evacuees began to pour into the city. Localexperts say the softening was to be expected due to increasingconstruction and departing Katrina households.

According to the Carrollton-based M/PF YieldStar's Q3 report,average occupancy is 93.5% versus its 2005 peak of 94%. The class Aassets are reporting the highest occupancies, 95%, in the market.Older product, though, is softer, with the average occupancystanding at 92%. As a result, rent increases have been impactedtoo, with the annual change from last year up just 0.1%.

Continue Reading for Free

Register and gain access to:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.