- The Houston multifamily market posted a mixed performance during the first quarter. Rents rose but are still lower than year-earlier levels. The vacancy rate ticked higher but absorption was positive, and the uptick in the rate was a result of an active period of new development.
- Vacancy in Houston rose 20 basis points in the first quarter, reaching 6.2 percent. The rate is up 80 basis points year over year.
- Asking rents are down 1.6 percent year over year but did tick up at the start of 2021. During the first quarter, asking rents rose 0.4 percent, ending the quarter at $1,086 per month.
- Future multifamily development will remain active. At the end of the first quarter, more than 50 apartment properties were under construction, totaling approximately 17,500 units.
- In transactions where sales prices are available, the median price in the first quarter was $142,500 per unit. Cap rates continued to trend lower, dipping 25 basis points to approximately 5 percent.