Houston’s older multifamily projects are showing strength while the upscale apartment market is overbuilding, according to a new report by Deal Sikes. Principal Matt Deal says Class-B and C properties have outstanding underlying investment fundamentals (especially occupancy) and have the potential for price gains in 2016. The inventory of these units is tight.
On the other hand, there are more than 100 luxury developments under construction in Houston, and the new supply will force upscale apartment owners to reduce rental rates.
