Houston apartment sector continues positive momentum

The Houston multifamily sector saw continued positive momentum over the second quarter as occupancy increased, rental rates had positive growth, and absorption was the highest it has been since fourth quarter 2017, reported Transwestern.

Over the quarter, 5,904 units were absorbed, with class A properties accounting for 48.1 percent of absorption, with 2,838 units.

The strong absorption pushed the occupancy rate past the recognized threshold of stabilization (90 percent) to 90.2 percent. With 14 new communities (3,992 units) delivering to market over the quarter, rental rates increased 170 basis points to $1.18 per square feet.

Given the strong underlying market fundamentals, such as high affordability, low unemployment and strong job growth, developer and inv