Energy sector hiring resume, benefiting Houston multifamily

​​HOUSTON – Rising energy prices have meant more hiring in energy-related industries, boosting demand for local ​Class B and C apartments.

In its latest multifamily market report, Marcus & Millichap says Class C vacancy remains the tightest, hovering in the high 5 percent area. As a result, effective rents for Class B and C units continue to rise, with Class C properties recording gains of more than 3 percent in each quarter since the energy downturn.

Class A apartments, specifically in western submarkets, are seeing the largest impact from energy industry cuts. Vacancy in this segment topped 10 percent in the first quarter, with some submarkets nearing 20 percent. As deliveries of luxury apartments remain elevated this year, further increases in vacancy will reduce the Class A effective rent.​​