Oct. 12, 2018
The product of strong job and population growth, Houston multifamily occupancy reached 90 percent in the third quarter. Marking a major milestone for a market that, a little over a year ago, was working through excess supply.
Multifamily occupancy has been on an upward trajectory, increasing every quarter since its recent low of 88.2 percent in the third quarter of 2017. The last time total occupancy was at or above 90 percent was March 2016.
Giving a boost to the entire sector, Class A occupancy reached 87.7 percent in the third quarter, its highest level since March 2013.
Construction took a pause in the last year as the market worked through the 34,700 units delivered in 2016 and 2017. Only 5,400 units have delivered so far this year. With no more than 2,500 units expected to deliver the rest of 2018, deliveries will be well below recent years.
With demand increasing and a relatively low level of deliveries year-to-date, we can expect a subsequent wave of construction to match apartment appetite.
Read more about our multifamily report in Bisnow.