MPF: Corpus Christi multifamily trends 4Q 2014MPF: Corpus Christi multifamily trends 4Q 2014https://www.recenter.tamu.edu/news/newstalk-texas/?Item=15442015-03-06T13:36:00Z2015-03-06T08:00:00Z

CORPUS CHRISTI - Aided by a booming local economy, Corpus Christi has consistently ranked among the nation’s top-performing apartment markets over the past three years — and it maintained that pace through mid-2014 according to MPF Research.

Considerable job growth levels have generated very healthy housing demand, pumping up apartment occupancy rates and rent growth levels in the metro.

In fact, as hard as it may be to believe, only California’s Bay Area has produced more rent growth than Corpus Christi over the last three years.

However, revenue growth levels in Corpus Christi cooled in fourth quarter 2014, as rent growth levels slid and occupancy backtracked. The slowdown coincides with recent economic concerns related to the drop in oil prices globally.

While that could have an impact on the apartment market longer term, the recent slowdown is more likely due some moderating from the very high levels that the market saw previously.

Also normalizing in Corpus Christi are employment growth levels, but economic improvements still remain solid. With economic growth moderating, Corpus Christi should continue to see some normalizing in apartment revenue growth numbers.

However, the one good thing Corpus Christi’s apartment market has going for it is relatively little new apartment supply on the way.

Properties Sampled: 116 Units Sampled: 20,416 Submarkets: 3

What changed this quarter? Apartment operators cut rents for the first time in 16 quarters, as effective prices fell 0.5 percent quarter-over-quarter. As a result, year-over-year rent growth measured 1.7 percent, a 15-quarter low.

Meanwhile, apartment demand in the metro was minimal during fourth quarter, falling just behind new supply. In turn, occupancy dropped 0.7 points quarter-over-quarter, with the rate landing at 94.8 percent, an 11-quarter low for the metro.

4Q 2014 Corpus Christi Apartment Trends
Effective Rent Occupancy Annual Job Change Annual Permits Annual Demand
$855 94.8% 5,400 jobs 1,150 units 253 units

For a submarket map and additional information, read more at MPF Research.

tags: Corpus Christi apartment NewsTalk, see Multifamily at Corpus Christi Market Research

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