Houston: Super Bowl of apartments, sky-high rents

HOUSTON – ZOM Texas is diving into Houston’s Tanglewood area with a 431-unit apartment project — The Hudson. The project will be built on a 5.3-acre site located on Fountainview at San Felipe, near a planned H-E-B-anchored shopping center.

“With Houston currently ranking No. 2 in the U.S. job market, and the anticipated robust job growth over the next five years, we niche into this market with a carefully researched, unique product and mix," said David Kubin of ZOM Texas.

Rents for Houston apartments have gone up significantly, says Bruce McClenny, president of Apartment Data Services. For the best Class A apartments rents went up an average of 8 percent in 2012 and 6 percent in 2013, he says, a phenomenal gain.

“It’s like winning the Super Bowl two years in a row,” McClenny says, noting that about 15,000 new units were built in Houston in 2013.

People are willing to pay more rent in order to live in a desired location. “People are making the choice not to commute,” said apartment expert Ryan Epstein of CBRE Group. “They are willing to pay an extra $300 to $400 to avoid the commute.”

In the close-in areas, some high-rise apartment towers are being constructed. Others, like ZOM Texas are building mid-rise “wrap” style construction, meaning the apartment living buildings surround a central parking garage.

Read more at Houston CultureMap.