Houston multifamily overbuilt? Two market experts say 'yes'Houston multifamily overbuilt? Two market experts say 'yes'https://www.recenter.tamu.edu/news/newstalk-texas/?Item=127332016-04-05T05:00:00Z2016-04-05T16:00:00Z

​​HOUSTON – In its 2016 Houston multifamily market outlook, Marcus & Millichap (M&M) says there's not enough demand for the large number of apartment units currently in the pipeline. A source quoted in yesterday's Houston Chronicle​ agrees.

M&M's outlook shows that roughly 18,000 apartments will be added to the local inventory this year. Developers delivered 17,000 in 2015. As a result, vacancy will rise 30 basis points to 6.5 percent. Last year, a 40-basis-point increase was recorded.

One apartment developer told the Houston Chronicle that they're not planning any more complexes in the Houston area in the near future.

"Houston is oversaturated with multifamily," said Leigh Scofield, regional director for new development for Worthing Cos. "It's just an area that's taken a big beating."

According to figures that Apartment Data Services provided to the Chronicle, nearly 38,000 units were completed across the area in 2014 and 2015, and about 55 percent of those are occupied. Their research shows that 27,000 units are now under construction.

Marcus & Millichap Real Estate Investment Services
Houston-The Woodlands-Sugar Land
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