Harvey Accelerated Houston's Multifamily Leasing Cycle By 18 Months, Study Finds

Harvey Flooding
Flooding In Houston After Hurricane Harvey

new report from CBRE found Hurricane Harvey has effectively accelerated Houston's multifamily recovery timeline, propelling it into a landlord-favorable market approximately 18 months ahead of schedule.

CBRE reasons Houston's quickly draining construction pipeline and reduced inventory due to flooding will cause supply to tighten while demand from displaced single-family residents, contract workers and natural growth will orient leasing toward landlords.

Harvey hit Houston's housing stock particularly hard, with an estimated 72,000 single-family homes damaged or destroyed. Houston’s apartment market was significantly less affected than initial estimates, with approximately 10,600 units reported to be damaged, according to Apartment Data Services, whose survey got an 81% landlord response rate.

Houston multifamily occupancy has tightened by 120 basis points while net effective rents have risen by 1.5% since the passing of the storm, according to Apartment Data Services.

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