Rents increase fastest pace on record: Houston multifamily

HOUSTON – Recent data show that apartment rents are increasing at the fastest pace on record, at the same time households are shifting from owning to renting, according to the second quarter report from CBRE.

According to the firm, Houston’s multifamily market is seeing positive absorption, fast rent growth, plenty of new construction, and strong investor interest.

Rents are growing at the fastest pace on record, 4.9 percent overall year-over-year. More than 18,000 new units are expected in the market by the end of 2014.

According to Real Capital Analytics, Houston posted $1.2 billion in multifamily sales in 2Q 2014, a gain of 48 percent from 1Q 2014.

“Although new supply is robust, new units continue to trail demand, which has been driven by significant net migration and job growth. Houston added 370,000 new jobs since the recovery began and expanded by more new residents than any other U.S. metro in 2013,” Sara Rutledge, director of research and analysis at CBRE, said in a statement.

For the full report, see Houston Multifamily MarketView 2Q 2014 (PDF).