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.

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