It seems as though every time we turn around, another apartment building is under construction in the Houston area. That anecdotal comment is backed with data—according to Axiometrics’ apartment market research, the MSA is forecast to receive an identified 15,219 new units in 2014 (this takes into account units that are already under construction, meaning this number could actually increase as more planned projects break ground). This total is close to twice as many units that were delivered in 2013 (7,692) and more than three times the number delivered in 2012 (4,391).
Even with the new supply coming online, Houston MSA’s annual effective rent growth has trended way above the national average. In January 2014, annual effective rent growth was 5.02%, while the national average was 2.78%. Though the MSA’s effective rent growth was down year over year from the 6.07% reported during 1Q13, it still increased from the 4.87% reported in 4Q13.
Read more...Will Demand for Apartments Remain High in Houston?
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