Space City multifamily market continues positive momentum
HOUSTON – Transwestern reported positive momentum for the city’s multifamily sector over the second quarter as occupancy increased, rental rates grew, and absorption hit its highest level since 4Q2017.
Over the quarter, 5,904 units were absorbed, with Class A accounting for 48.1 percent at 2,838 units.
The strong absorption pushed the occupancy rate past the recognized threshold of stabilization (90 percent) to 90.2 percent.
With 14 new communities (3,992 units) delivering to market over the quarter, rental rates increased 170 bps to $1.18/sf.
Given high affordability, low unemployment, and strong job growth, developer and investor interest is prevalent with nearly 3,800 units breaking ground and 12,000 units selling over the quarter.
The Real Estate Center has more Houston multifamily news online.
Source: Transwestern
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