Multifamily Market Real Estate Trends

Houston Housing Market Trends – Winter 2021

Houston Multifamily Market Report
Image by Sean Pavone/iStockphoto.com

Bayou City Withstands New Shock

Considering continued worries over the relative instability of oil prices and the pandemic-induced economic contraction, Houston’s multifamily market fared better than initially expected. As of January, rent growth was flat on a trailing three-month basis, at $1,109, behind the $1,392 national figure.

Employment posted a 5.3% decline in the 12 months ending in November, outperforming the -7.2% national rate. Leisure and hospitality shrunk by 40,000 jobs, while professional and business services was the only sector to add positions (600 jobs), aided by its ability to maintain operations through remote work. Meanwhile, some businesses are coming to or expanding in the Houston area. Military contractor MVL Group purchased the historic Republic Building downtown and intends to transform it into its new headquarters. Amazon is expanding its fulfillment center footprint with two new projects totaling almost 2 million square feet.

Transaction activity slowed last year, with investors paying increased attention to the suburbs and smaller cities due to surging demand for more space. Deliveries, on the other hand, seemed unabated by the health crisis. More than 13,000 units came online in Houston in 2020. Despite steady completions during the past few years and the lingering effects of the pandemic, Yardi Matrix expects the average Houston rate to improve by 2.8% in 2021.

Read the full Matrix Multifamily Houston Report-Winter 2021

 

About the author

Laura Calugar

Laura Calugar is a senior associate editor with Commercial Property Executive and Multi-Housing News. She has a 10-year background in broadcast media and joined the CPE-MHN team in 2016.

Add Comment

Click here to post a comment