MPF: Corpus Christi multifamily trends 1Q 2015

CORPUS CHRISTI – Aided by a booming local economy, Corpus Christi consistently ranked among the nation’s top-performing apartment markets from 2011 through mid-2014.

Considerable job growth levels generated very healthy housing demand, pumping up apartment occupancy rates and rent growth levels in the metro.

In fact, as hard as it may be to believe, only California’s Bay Area produced more rent growth than Corpus Christi from 2011 through mid-2014.

However, annual revenue growth levels in Corpus Christi cooled in fourth quarter 2014, as rent growth levels slid and occupancy backtracked, and that continued into first quarter 2015.

The slowdown coincides with recent economic concerns related to the drop in oil prices globally.

While that could have an impact on the apartment market longer term, the recent slowdown is more likely due to some moderating from the very high levels that the market saw previously.

Also normalizing in Corpus Christi are employment growth levels, but economic improvements still remain solid.

With economic growth moderating, Corpus Christi should continue to see some normalizing in apartment revenue growth numbers. However, the one good thing Corpus Christi’s apartment market has going for it is relatively little new apartment supply on the way.

What changed this quarter? Apartment demand slipped into negative territory during 1Q 2015.

Combined with new supply, the net move-outs took occupancy down 0.6 points quarter-over-quarter, with the rate landing at 94.2 percent, a 12-quarter low for the metro. Meanwhile, apartment operators pushed rents up 0.5 percent quarter-over-quarter.

For a submarket map and additional information, read more at MPF Research.

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