Marketline pg 75.qxp_Layout 1 6/14/17 2:42 PM Page 1
MarketLine By BRUCE MCCLENNY, President, ApartmentData.com • • • • • • • • • • • • • • • • • •
HOUSTON Snapshot 88.5% $981/mo. 111.2¢/sq.ft./mo. 882 sq.ft.
Past 12 Months: -1.2% rental rate growth 9,921 units absorbed
– 90.0
96.0 –
– 89.0
94.0 –
– 88.0
•
Recently Opened (12 months): 92 communities 25,252 units
98.0 –
Under Construction: 34 communities 8,403 units
Occupancy (%)
Operating Supply: 2,717 communities 636,095 units
Rental Rate (¢/sq.ft./mo.)
Occupancy: Price: Rental Rate: Size:
• • • • • •
– 87.0 May 17
Apr 17
Feb 17
Mar 17
Jan 17
Dec 16
Oct 16
Nov 16
Sep 16
Aug 16
Jul 16
Jun 16
May 16
Apr 16
Feb 16
Mar 16
Jan 16
Dec 15
Oct 15
Nov 15
Sep 15
Aug 15
Proposed Construction: 60 communities 17,694 units
Jul 15
Jun 15
92.0 –
History of Effective Rental Rate & Occupancy for All Units
Hottest Submarkets Over the Past Three Months
Concessions
Annualized % of Market Rank Submarket Absorbed 1 Bear Creek/Copperfield/Fairfield 9.8% 2 Woodlands/Conroe South 6.1% 3 Alvin/Angleton/Lake Jackson 6.9% 4 Lake Houston/Kingwood 4.8% 5 Galleria/Uptown 11.3%
Rental Rate Growth % 2.2% 2.8% 1.8% 2.5% 0.9%
Total Units Class w/Concessions All 257,519 A 84,664 B 90,513 C 71,770 D 10,572
% of Total Units 40% 59% 37% 36% 22%
Average Special -3.8% -7.5% -1.9% -1.9% -1.1%
Citywide Effect -8.5% -11.9% -5.3% -5.2% -5.0%
One Month Free = -8.33%
THE FIRST TABLE ABOVE GIVES A SNAPSHOT of the current market conditions. The graph displays the overall occupancy and effective rental rates over the past 24 months. These statistics are derived from a continuous survey of all apartment communities in the Houston region. The effective rental rates are the calculated net of concessions and utility adjustments. The second table lists the five hottest submarkets in the Greater Houston area. There are a total of 41 submarkets, and the ranking is based on the best combination of rental rate growth and absorption over the past three months. The third table distributes and analyzes concessions (specials) by classification. Concessions generally are represented by three types of specials: move-in, months free or floor plans. The effect of these specials is captured and prorated over a lease term to arrive at a percentage reduction in market or street rents.
TEXAS
Dallas/Ft. Worth
San Antonio
Austin
Occupancy: Price: Rental Rate: Size:
Occupancy: Price: Rental Rate: Size:
Occupancy: Price: Rental Rate: Size:
92.2% $1,058/mo. 121.5¢/sq.ft./mo. 871 sq.ft.
90.7% $909/mo. 107.3¢/sq.ft./mo. 847 sq.ft.
91.5% $1,185/mo. 135.9¢/sq.ft./mo. 872 sq.ft.
Past 12 Months: 3.1% rental rate growth 13,402 units absorbed
Past 12 Months: 1.1% rental rate growth 5,0588 units absorbed
Past 12 Months: -0.7% rental rate growth 7,671 units absorbed
Operating Supply: 2,915 communities 677,270 units
Operating Supply: 850 communities 178,693 units
Operating Supply: 905 communities 208,526 units
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ApartmentData.com has been providing apartment data and marketing products since 1986. ApartmentData.com covers Texas’ four largest metro areas and provides real-time access for property specific information, market surveys and historic submarket data for more than 1.3 million apartment units. For more information, contact Bruce McClenny at 800-595-8730. © 2017 ApartmentData.com July 2017
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