Oil's Downturn Makes Houston's Overbuilt Multifamily Market Even Worse
With the flagging oil industry stagnating Houston's job growth, the multifamily market has been hit especially hard.
The relative lack of new jobs comes at the worst possible time for Houston, which anticipates over 20,000 new apartments to be delivered over the next year or so. Those projects were planned when the energy industry was at a peak, and though many projects will fail to reach completion, existing stock has already had to make serious concessions to boost occupancy rates, the Houston Business Journal reports.
Some landlords are offering as many as three months of free rent in addition to perks for moving, and Houston-based national multifamily powerhouse Camden Property Trust reported a 3.3% decrease in revenue for Q1 2017, making Houston its worst-performing market.
Camden CEO Ric Campo anticipates Houston's multifamily market will bottom out in 2017, but noted an anticipated recovery from the energy sector and positive in-migration rates as keys in filling the new apartment deliveries. Until those buildings are filled, real growth might be far off in Houston.