Houston Multifamily Market Report | Q2 2024

HOUSTON - Aug. 1, 2024 - PRLog -- The Houston multifamily market finished the second quarter with strong positive absorption in all classes, resulting in an increase in occupancy rates. New completions also increased while the construction pipeline fell during the quarter.

Transaction levels for investment activity remained low as buyers and sellers look forward to a more favorable economic picture regarding interest rates and operating costs.

Danny Rice | President

Key Takeaways

• Net absorption jumps for all classes
• Occupancy also up
• Average rents marginally increase
• Overall sales volume slows

Houston Highlights

Bolstered by strong seasonal demand, overall net absorption jumped to 7,880 units, a significant increase from both the prior quarter and year over year. Absorption was positive across all property classes, with Class A units accounting for 72.3% of the total absorption. The construction pipeline slowed to 18,775 units in the second quarter, 10.3% fewer than the previous quarter and 20.1% less year over year, even though the number of proposed units increased to the current 35,988 units. Occupancy rose 40 basis points in the second quarter but is down 50 basis points year over year. New supply rose 30.0% to 5,727 units but is down 11.1% year over year. Average monthly effective rent increased marginally to $1,277 per unit but was down year over year. Class A rents at $1,749 have reported marginal increases in 2024 but were down 2.5% from the same time last year.

View the full report: colliers.com/en/research/houston/q2-2024-houston-multifamily