Houston apartment market benefits from hiring reboundHouston apartment market benefits from hiring reboundhttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=176612017-09-05T05:00:00Z2017-09-05T16:00:00Z

​​​​​HOUSTON – Local housing demand caused apartment absorption to outstrip new supply by nearly 2,000 units in the second quarter. According to Marcus & Millichap's third-quarter market update, this was largely because of a hiring increase in several industries related to oil and gas.

The firm projects that 24,500 units will be completed this year, and vacancy will rise to 8.2 percent. Rents will increase 1.8 percent to an average of $1,035 per month.

According to the firm's report, "construction is heavily concentrated in northern and western submarkets close to the Energy Corridor. More than 10,000 apartments opened in nearby areas over the last year. Class A vacancy has climbed to more than 10 percent in many of these submarkets, dramatically slowing the pace of rent growth in luxury units.

"The eastern, south, and southwestern portions of the metro, however, have benefited from strong hiring in the downstream oil and gas industry. Limited supply growth in these areas will foster vacancy rates nearly 200 basis points below the metro average and a steady pace of rent growth."​​​

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