Home News Houston Apartment Rent Prices Falling After More Than 18 Months Of Steady Increases

Houston Apartment Rent Prices Falling After More Than 18 Months Of Steady Increases

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Houston apartment prices and occupancy rates took another hit in October after nearly two years of steady growth, a new report shows.

Apartment occupancy declined for the third month in a row, reaching 90.7% in October. ApartmentData.com reported in NovemberThis represents the downward trend since April, when occupancy was 91.7%. Community Impact Reported.

Meanwhile, October rent was $1,254/month, down slightly from September’s $1,261/month.

Another November report put out by List of apartments Houston’s average rent for October was $1,074 for a one-bedroom apartment and $1,288 for a two-bedroom apartment. This shows him down 0.3% from September, but he’s 4% higher than in October 2021.

ApartmentData reports that rents are up about 8% year-over-year.

Houston rents rose throughout 2021, including significant monthly increases. For example, from September 2020 to September 2021, his rent increased from $1,046 to $1,162, a 12.8% increase. Community Impact Reported.

The slowdown in Houston rent growth was due to lower asking rents nationwide in the third quarter. at a higher rate than expected. coster group Jay Lybick, national director of Multifamily Analytics, said last month it was the weakest third quarter for multifamily homes in 30 years, with asking rents down 0.4%.

“With an estimated 110,000 units slated for new supply in the fourth quarter, all signs point to rental growth slowing even more rapidly by the end of the year than initially forecast,” said Lybik. said in a statement.

ApartmentData reports that Houston has acquired about 22,000 units in the past year, with about 17,000 more under construction. An additional 34,000 units are proposed for construction.

According to Apartment Data, the five hottest submarkets based on rental growth and absorption rates represent a mix of inner-city and peripheral areas. Almeda/South Main had the highest annual growth rate, followed by Sharpstown/Westwood, Memorial/Spring Branch, Dickinson/Galveston and Greenspoint/Aldine.

Galveston has the fastest rent growth on the subway, with Apartment List reporting a 10.9% year-on-year increase. Rents are still significantly lower than Houston, with a median one-bedroom rent of $980.

Baytown listed the cheapest apartment rents on the Houston subway, with a median one-bedroom cost of $900 per month. sugar land was the most expensive, at $1,620 for a one-bedroom.

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