July 30, 2018
The Houston multifamily market continued its upward trajectory in the second quarter of 2018. Thanks to strong job and population growth, it’s poised to be one of the top multifamily markets in the U.S. in the near term.
A sign of the market’s health, the sector saw 3,907 units absorbed in the second quarter – up 703 units from the first quarter. Occupancy increased accordingly to 89.9 percent and average asking rents followed suit, up $10 over the first quarter and 5.2 percent year-over-year.
Moreover, downtown continued its growth as a residential market, absorbing 500 units in the second quarter, double the 12-month average of 248 units.
While demand has returned, supply is still recovering from the lending constraints of the last two years. As a result, 2018 absorption is expected to outpace new deliveries by nearly 2:1. Market dynamics should push occupancy over 90 percent for the first time since 2015, spurring more construction in the coming years.
With strong job and population growth and a recovering supply cycle, Houston’s multifamily market is expected to continue strengthening, attracting capital from across the U.S. and abroad in the process.
View our full Q2 2018 multifamily market report here.
Read more about our multifamily report in the Houston Business Journal.