Houston multifamily 2Q 2014: Hendricks-Berkadia
HOUSTON – As hiring accelerated in the last six months, so did leasing activity with 10,650 newly occupied apartments. Rental demand was up from the 10,170 units absorbed during the same time period last year.
The Houston inventory expanded by 4,300 new apartments in the last three months. Deliveries were up 65.6 percent from the first quarter.
Heightened leasing activity pushed vacancy down 60 basis points to 5.3 percent in the second quarter. Operators advanced rents 1.6 percent in the last three months to $1,037 per month by June. The average asking rent increased 4.1 percent since mid-2013.
| Submarkets* | Vacancy | Average Rent | ||
| 2Q 2014 | 2Q 2013 | 2Q 2014 | 2Q 2013 | |
| Bear Creek/Katy | 3.7% | 3.9% | $1,061 | $1,010 |
| Braeswood/Bellaire | 5.1% | 3.9% | $1,309 | $1,269 |
| Brazoria County | 3.7% | 5.4% | $1,136 | $1,063 |
| Briar Forest/Ashford | 4.2% | 5.2% | $1,000 | $939 |
| Briar Grove/Westchase | 4.6% | 4.6% | $1,082 | $1,021 |
| Far NW/Montgomery County | 5.2% | 4.4% | $1,093 | $1,048 |
| Fort Bend County | 4.3% | 4.0% | $1,113 | $1,054 |
| Galveston County | 5.4% | 5.6% | $1,001 | $952 |
| Montrose/River Oaks | 4.6% | 3.9% | $1,712 | $1,668 |
| North/Northeast Houston | 5.5% | 5.8% | $1,203 | $1,138 |
| Total** | 5.3% | 5.7% | $1,037 | $996 |
*Listed submarkets include those which have an average rent over $1,000 in 2Q 2014.
**Total represents all 26 submarkets in the Houston area.
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