Little Change in Houston Multifamily Market: A Comprehensive Analysis

Little Change in Houston Multifamily Market: A Comprehensive Analysis

According to the latest Houston Multifamily Market Report from 2Q 2024 by Marcus & Millichap, the luxury segment of Houston’s multifamily market is displaying resilience. Despite new supply pressures, vacancy rates in this segment have decreased.

Some key insights from the report include:

– In March 2024, Houston’s luxury-tier units saw a decrease in vacancy rates by 10 basis points year-over-year to reach a rate of 7.1%, making it the only segment with an annual contraction.
– Class C properties faced challenges as their vacancy rates rose by 100 basis points year-over-year to reach a rate of 8.3%. This is also the highest first-quarter figure since 2017.
– The expected increase in inventory for the Houston metro area is minimal, with projected deliveries for this year just above the average of last decade at around16,300 units.
– Average effective rent in Houston is expected to slightly increase and reach $1,372 per month in2024 due to softening demand and rising vacancies.
– Despite slower job growth projections for other markets nationally,Houston remains strong and ranks second-highest employment addition nationwide for2019.

Overall,the multifamily market outlook shows little changeinHouston despite some challenges faced by certain segments such as Class C properties.However,Houston continues its trend towards robust job growth which will continue driving demandfor housinginthe city.

About the Publisher:
Steve Griffin is based in sunny Palm Harbor, Florida. He’s an accountant by profession and the owner of GRIFFIN Tax and REVVED Up Accounting. In addition, Steve founded Madison Avenue Technology. With a strong passion for commercial real estate, he’s also dedicated to keeping you up to date with the latest industry news.

Share the Post:

Related Posts