Axiometrics Research Finds Houston Apartment Market Still Declining

Apartment Construction

Houston’s apartment market showed few signs of turning around in August, as average rent levels declined again and annual effective rent growth is at a low not seen in more than six years, according to Axiometrics. 

“Though job gains in education, healthcare and hospitality somewhat offset the continued job losses in the energy sector, the demand for apartments is just not there,” said Stephanie McCleskey, vice president of research for Axiometrics. “With new properties being completed every month, they just won’t be filled as quickly as we would like to see until job growth picks up.”

Job gains picked up slightly in July, with employers adding 13,300 jobs in the 12 months ending in July. The Mining & Logging sector lost 13,400 jobs. Meanwhile, the peak of multifamily deliveries is still to come, with 6,650 new units coming to market in the third quarter of 2016, another 7,134 identified for the fourth quarter and 6,725 in the first quarter of 2017.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's Houston Newsletters
Related Stories

13 GW At Immediate Risk As Texas Data Center Developers Face New Power Struggle

Brookfield Gives Up DTLA's Beaudry Apartment Tower

Democrat Letitia Plummer Wins Harris County Judge Election

Multifamily Design: Maintaining The 'Romance Of The Garden'

Texas Flips Blue, Putting Data Center Boom On Notice

2.7M SF Campus Trades In Houston's Largest Industrial Sale

Piedmont Realty Exiting Houston Market With Office Dispositions

Suburban D.C. County Weighs Microhousing As Affordability Salve

Fannie Mae, Freddie Mac Rewrite Underwriting Standards For NYC's Rent Freeze

RealPage Antitrust Case Ends With Nearly $360M In Settlements For Renters

ZOM Living Entity Files For Bankruptcy To Fund Fight To Overturn $323M Judgment

Golden Apartment Building Sells For $62M To Chicago Company