CBRE: Houston multifamily 2Q 2014 MarketViewCBRE: Houston multifamily 2Q 2014 MarketViewhttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=33872014-08-13T12:08:00Z2014-08-13T06:42:00Z

HOUSTON - Multifamily construction activity remained strong in second quarter 2014 delivering 3,722 apartment units to the market. This was down slightly from 1Q 2014 when 4,143 units delivered.

At the end of 2Q 2014, 23,722 units remained under construction across the Houston metro area.

Average rental rates increased to $1.03 per sf during 2Q 2014 from $1.00 per sf in 1Q 2014. Rental rates in Houston are at an all time high after a couple of years of rapid growth. Rental rates increased 7.6 percent year-over-year in 2Q 2014.

The highest overall 2Q 2014 rents include:

- Montrose/Museum District submarkets at $1.80 per sf;

- Inner Loop West/ Greenway Plaza submarkets at $1.75 per sf;

- Heights submarket at $1.71 per sf. The highest rents in suburban markets were found in Fort Bend and the Woodlands/Far North areas, at an average of $1.21 per sf.

The number of units under construction increased from 22,246 in 1Q 2014 to 23,722 in 2Q 2014.

The West Memorial/Briar Forest submarket remains one of the market’s hottest areas for new development. Units under construction increased by 8 percent in 2Q 2014 from 1Q 2014. The booming office development in the area is driving apartment demand.

Houston Top Five Multihousing
Submarkets 2Q 2014*
Submarket Unit
Occ. Under
West Memorial / Briar Forest 25,255 87.9% 3,374
Montrose / Museum District 13,231 87.0% 3,214
Inner Loop West / Greenway Plaza 14,950 81.9% 2,847
Katy / Far West 17,192 79.1% 2,820
Galleria 22,870 92.1% 1,994

*ranked by Under Construction Units

For the full report, see Houston Multifamily MarketView 2Q 2014 (PDF) under Multifamily in Houston-Sugar Land-Baytown Market Data Sources.

Houston-The Woodlands-Sugar Land
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