Houston Apartment Rents Rose In Several Suburbs In October
Average Houston apartment rents in October are lower than a year ago, but several suburban areas have seen year-over-year rent growth, according to the latest report from RENTCafé.
Average monthly rent in Houston was $1,106 in October, 0.8% lower than a year prior. Though rent prices have decreased within the city of Houston over the past year, rents have risen in six of the largest 10 cities in the Houston metro, according to Apartment List’s November report, which examined October apartment data. The Woodlands had the highest apartment rents in the city at $1,523 per month, up 3.5% from October 2019.
Pearland rents were also up from a year ago at $1,365 per month, an increase of 1.7% from October 2019. In Missouri City, average rent in October was $1,316, up by 4.2% from a year ago. Pasadena apartments averaged $915, up by 3.4% from a year ago. Baytown apartments averaged $958, up by 3.1%, while Texas City’s average rent rose 1.3% to $942.
A recent LendingTree survey found that 46% of respondents were thinking about moving within the next year. Of the people who said they were thinking of moving, 44% said it was because their current home is too expensive.
In addition, 27% said it was because their current home is too small, and another 27% said they are looking for different features. Only 12% said they want to live in a different part of town.
Yardi Business Intelligence Manager Doug Ressler told Bisnow that overall rents in Houston started to contract in December because the energy industry was already starting to experience a downturn. The coronavirus pandemic has kept rental rates in the negative range since then.
Most economic disruption in Houston has been caused by the pandemic since March, and the changing data variables of economic stimulus and vaccine availability make it difficult to develop an exact economic forecast. However, Ressler said Houston will likely begin to see rent recovery during the first half of 2021.
“We see the Houston market beginning the initial phases of a gradual recovery. We anticipate east Houston will begin an earlier recovery in Q1 2021, and west Houston in Q2 2021,” Ressler said.
