Houston Performance Highlights Q2 2013
Houston is the nation’s leading job producer so it should come as no surprise that the metro is also leading the nation in apartment demand.
In recent months, we’ve seen a rebound in single-family home sales. So what does that mean for the apartment sector? Will we see less demand for apartments because so many people are buying new homes? In a market with strong job growth, a rising tide tends to boost all ships. And Houston is exhibit A.
Houston recorded a record number of home sales in May 2013 with 7,794 homes sold according to local realtors. What effect did that have on the apartment market? It turns out, very little.
Occupancy: Houston led the nation with 9,631 apartment units absorbed in Q2 2013, among the best performances the metro has ever seen. With demand easily outpacing supply, occupancy jumped 130 basis points to 93.6%, the best rate seen since 2006 when occupancy spiked from demand created by Hurricane Katrina evacuees.
Rent Growth: With demand so strong, operators felt confident about pushing rents. Rents jumped 1.3% quarter over quarter and up 4.3% year over year, one of the highest jumps the metro has ever seen.
Economy: The big driver in the Houston demand numbers is lots of job growth with 91,600 jobs added annually, the best in the country. The job pool in Houston expanded 3.4% annually, which is impressive especially for a market this size.
Outlook: Because demand will continue to outpace supply in Houston, MPF Research expects the metro to remain the top performing apartment market in Texas, with occupancy remaining in the mid 93% range and rents climbing another 3.7% year over year.
By: Jay Parsons July 10, 2013
Shared by Kathy Curtis/Texas Apartment Locators, Website at http:AptExpert.com - Call today or "start apartment search" by simply filling out the contact form - move today or next month!
All across the country, apartment rent growth levels are easing. But not in Houston, where the booming local economy is finally translating to some very significant rent growth. October, 2012
Strong Job Growth Fuels Apartment Demand in Houston
Houston’s booming economy has helped top-tier apartments fill up, and that’s now triggering demand for the metro’s long-ailing bottom-tier apartment properties.