Houston Q1 Multifamily Market Insights: Houston Economy Likely to Post Strong Growth in 2022
Highlights:
- The Houston multifamily market posted healthy growth during the first quarter. Renter demand is being fueled by an expanding economy, which has pushed rents higher and kept vacancies below the five-year average.
- Vacancy in Houston remained stable at 5.7 percent for the third consecutive quarter. Despite no recent change in the rate, vacancies have still improved 50 basis points in the past year.
- Asking rents continued to grow at a rapid pace as momentum carried over from the end of 2021. Rents rose 2.9 percent to $1,210 per month in the first quarter; year-over-year rents are up 11.4 percent.
- In transactions where pricing was available, the median price in the first quarter was $184,000 per unit. Despite a rise in pricing, cap rates trended higher at 5 percent, an increase of 20 basis points compared to the average rate in 2021.
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