- The Houston multifamily market made sound improvements during the third quarter, fueled by a fully recovered local economy and the region’s growing population. Absorption levels have been elevated for the past two years, driving developers to accelerate the pace of apartment deliveries.
- Vacancy continued to trend lower in recent months, falling 10 basis points during the third quarter to 5.4 percent. Year over year, the rate has dropped 30 basis points.
- Rents continued to advance at a rapid rate in recent months. Asking rents reached $1,237 per month, up 2.2 percent for the quarter and 6.9 percent higher than one year ago.
- The pace of multifamily transactions slowed during the third quarter, but sales velocity in 2022 is ahead of the year-earlier pace. In transactions where pricing was available, the median sales price thus far in 2022 is $168,400 per unit. Cap rates have ticked higher in recent months, averaging about 5 percent.