Houston Q3 Multifamily Market Insights: Rapid Job Growth Fuels Tightening Vacancy

Highlights:

Houston Multifamily market report snapshot for Q3 2022
  • 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.

Read the report

A checkbox that looks like a button used to make the rest of the form visible.
Let us know what emails you want to receive