Apartment investors optimistic about HoustonApartment investors optimistic about Houstonhttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=141122016-08-08T05:00:00Z2016-08-08T20:00:00Z

​​​​​HOUSTON – "Investors remain optimistic about Houston’s long-term economic outlook, chasing multifamily deals in budding submarkets," reports Marcus & Millichap in its second quarter 2016 market update.

According to the firm's report, job growth will remain modest this year as employers hire 17,000 workers, a 0.6 percent year-over-year increase. Additions are shifting to the medical and hospitality sectors. Employers added 20,700 positions in 2015, expan​ding the employment base 0.7 percent annually.

Developers will complete 24,500 units locally this year, expanding apartment stock 3.9 percent from 2015. This includes affordable and seniors housing, in addition to 23,000 market-rate rentals. Last year, builders brought 15,300 apartments online.

Apartment development initiated during booming employment will create headwinds to vacancy compressing this year. The rate will inch up 30 basis points to 6.5 percent, marking a second consecutive year of gains. Last year, vacancy rose 40 basis points.

The city's average rent will rise 4.5 percent from the end of 2015 to $1,060 per month by year end, slowing from last year’s gain of 5.5 percent.

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