Job growth falling, but demand may hold for Houston apartments

​​HOUSTON – There’s an adage in Houston’s apartment industry: For every five or six new jobs created, demand for housing grows by one apartment unit.

By that logic, Houston developers have been constructing tens of thousands of new apartment units in recent years as the fracking frenzy flooded Houston with jobs.

However, job growth is slowing in Houston as energy companies announce thousands of employee layoffs amid the oil slump.

The Bayou City is expected to generate about 21,900 jobs in 2016, a far cry from the 105,100 jobs created in 2014, according to the Greater Houston Partnership.

Houston currently has 102 properties totaling 29,000 units in the pipeline for the next two years, according to Apartment Data Services LLC.

Economists say that’s too many apartments for the number of jobs predicted for the region.

However, some multifamily developers believe demand for new apartments may hold despite poor job projections during the energy downturn. These developers argue Houston can support new luxury apartments even while job growth is slowing.

Developers believe demand will hold up for Class A apartments despite energy layoffs, which are affecting a segment of Houston’s population who are more likely to be homebuyers, not apartment renters.