CBRE: Houston multifamily doing well despite oil slumpCBRE: Houston multifamily doing well despite oil slumphttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=109152015-10-22T05:00:00Z2015-10-22T20:00:00Z

​​​HOUSTON – The city's multifamily market is performing "surprisingly" well despite the downturn in oil prices, according to CBRE Group Inc.

"We've had more supply than demand, no question about it," said Hal Holliday Jr., executive vice preside​nt with CBRE Houston's debt and structured finance division. "But it's been a good y​ear." 

Although 17,400 new apartment units are expected to deliver this year, the multifamily occupancy sits around 91 percent. With such a high volume of new construction, occupancy rate could drop to the high 80 percentile.

Despite the new construction, apartment absorption is "surprisingly good," CBRE says. Houston has absorbed 13,100 units so far this year and is on track to absorb around 14,000 units total this year. Although that's much lower than the 20,000 units absorbed last year, it is still "a very good performance."

The city is facing an oversupply of apartments, however. Developers are expected​​ to deliver another 16,000 units next year, exacerbating the already large supply. 

The pipeline for future projects is drying up as institutional capital for new projects has evaporated during the oil slump.​ There are only 1,900 proposed units expected to be under construction in 2017; the lower levels of new construction should help right the supply-demand equation.

Houston Business Journal
Houston-The Woodlands-Sugar Land
http://www.bizjournals.com/houston/morning_call/2015/10/cbre-houston-multifamily-market-performing.html?iana=ind_creRead more at {Source}

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