Houston Apartment Market (September 2011)

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SMART Apartment Data Announces Growth in Occupancy, Rental Rates and New Construction for the Houston Apartment Market

Source: http://www.SmartApartmentData.com

The overall market has absorbed 6,995 units in the last 12 months. 4,968 of those units have been absorbed within the last 6 months. Year over year, occupancy has increased 1.5%, finishing out September 2011 at 88.9%. Effective Rental Rates have increased 4.5% to an average of $770, with Rents psf rising 4.76% to $0.88.

New Construction: 18 communities/2,810 units have been completed in 2011 and are now leasing. 1,676 of the new units have been Tax Credit/Section 8 or Senior Housing. Currently there are 4,714 conventional units under construction and approximately 12,000 units proposed. At the rate of construction the market will surpass 2010 construction of 22 communities/4,406 units.

September 2011 over October 2010:

<10 year vintage : This segment of the market place represents 117,112 units or 21% of the total market, and has seen an overall positive net absorption of 2,444 units over the last 12 months, which includes the impact of new inventory. Overall occupancy increased 2.1%, finishing out September 2011 at 92.9%. Effective rental rates increased 5.3% to an average of $1,068 and effective rent psf rose 5.88% to $1.08.

10 - 20 year vintage: This segment representing 76,963 units or 14% of the market experienced positive net absorption of 394 units over the last 12 months. Overall occupancy rose 0.9% finishing out September 2011 at 93.8%. Effective rental rates climbed 6% to $1,004 in September 2011 and effective rent psf increased 6.9% to $1.08.

21 - 30 year vintage: This segment representing 100,040 units or 20% had a positive net absorption of 1,068 units over the last 12 months. Overall occupancy rose 1.1% finishing out September 2011 at 87.6%. Effective rental rates rose 2.5% to $658 in September 2011 and Rent PSF increased 2.53% or $0.81.

Over 30 year vintage: Representing 259,871 units or 46% of the market has experienced occupancy growth of 1.5% within the last 12 months, finishing September 2011 at 85.8% and absorbing 3,252 units. Effective rental rates increased 2.8% to $612 and effective rent psf rose 2.77% to $0.74

Tax Credit and Section 8: Representing 525,30 units or 9.66% of the entire market, this segment has remained stagnant at 89% occupancy over the last 12 months and has shown negative unit absorption. Effective rental rate have seen a slight increase of 2.5% to an average of $681 for September 2011 and effective rents psf rose 2.77% to $.074. 13 Tax Credit/Section 8 communities have been built in 2011, 7 being senior housing.

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