Occupancy Avg. Rental Rate Net Absorption Under Construction Completions Houston’s multifamily market started the year with The Northwest absorbed more than 1,100 units or leasing demand on a sound note, absorbing nearly roughly 38% of the total absorption this quarter, 3,000 units in the first quarter of 2018 and most likely stemming from homeowners still continues to showcase tightening fundamentals; displaced by Harvey. The construction pipeline overall occupancy increased 30 basis points over continues to subside for now with the market the quarter to 89.7% and rents grew an annualized currently holding just under 11,000 units 4.5% to $1.16 per sq. ft. across all classes. underway, far below the 5-year active average construction level of 18,580 units. According to reports from Apartment Data Services (ADS) the Central submarket cluster was a hot bed of activity this quarter. The cluster accounted for three of the five hottest submarkets for the quarter Moody Analytics is forecasting Houston to add with Downtown, Heights/Washington Ave, 72,700 new payrolls this year, up from 70,500 in Montrose/Museum /Midtown – Downtown 2017. Using the conventional demand benchmark absorbed 3.6% of its market inventory and saw a of 6:1 for new leasing growth, the outlook this year rental growth of 22.5% annualized. is for Houston to absorb approximately 12,000 units based on sustained job growth. Robert C. Kramp Director, Research & Analysis– Texas-Oklahoma Division +1 713 5771715
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