Industry leaders predict apartments to continue to thrive for next several years
Posted on January 14, 2014 | By Erin Mulvaney from the Houston Chronicle
Houston’s apartment market has had some of its best years ever in 2012 and 2013, with builders adding tens of thousands more units that should be completed this year to meet a growing demand, industry leaders said Tuesday.
The Houston Apartment Association hosted a panel at the Post Oak Hilton Tuesday to provide a look at the multifamily market, including the effects of job growth, rising rents, new construction developments and forecasts for 2014.
Last year, twice the number of properties were introduced compared to 2012, said Bruce McClenny, president of Houston’s Apartment Data Services. He said some areas are creeping up even higher. The average rent in the Galleria/Uptown area is $1,850.
He said this brings up the debate about whether people can afford the rising cost of living in Houston. He said compared to other markets in the United States, Houston is still on the low end of the spectrum. More demand and a trend of upscale building has pushed rents up 6 percent in the last year. The multifamily trend continues to move west.
The developers foresee construction and labor costs and financing to be issues to consider for building in Houston. Orion CEO Kirk Tate said the last two years are the best he has seen in his 40-year career.
“We have memories and we wonder what’s going to happen when the music stops,” Tate said. “I don’t want to be holding too much when it stops.”
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