💥 Explosive Growth in Houston’s Multifamily Market: What You Need to Know 🏢

🚀 Houston's Multifamily Market: Growth, Opportunity, and What's Next! 🏙️

August 09, 2024•3 min read

🚀 Houston's Multifamily Market: Growth, Opportunity, and What's Next! 🏙️

💥 Explosive Growth in Houston’s Multifamily Market: What You Need to Know 🏢

Hey everyone! 🌟 If you're curious about what's happening in Houston's real estate scene, especially in the multifamily sector, you're in the right place. Houston has been buzzing with activity, and I'm here to break it all down for you. Let’s dive in! 🎉

🔥 Steady Demand in the Multifamily Sector

Houston's multifamily market is on fire! 🔥 The city has experienced its sixth consecutive quarter of demand gains, with over 7,880 units leased across all property classes—A, B, C, and D. That’s a big win for landlords and property managers, as market occupancy increased by 20 basis points. The summer leasing season definitely played a role in this boost, with more people moving into new homes during these warmer months. 🌞

💰 Rising Rents and Growing Populations 🌆

With more people leasing apartments, it’s no surprise that rents are going up too. 📈 There’s been a 70 basis point increase in annual apartment rents. Twenty-five submarkets in Houston have benefited directly from this surge in leasing activity. The combination of steady population growth and the arrival of new, competitive properties has really fueled this trend. Houston is booming! 🚀

🏗️ Houston's Construction Boom

Speaking of new properties, Houston’s construction pipeline is massive—one of the largest in the U.S.! 🏢 Over 18,775 units were in the works by the end of Q2 2024, although this is down from 21,700 units at the end of Q1. Since 2021, the 10-county Houston metro area has added more than 265,000 new residents—the second-largest gain in the U.S. This population boom, along with new job growth (Houston added 6,500 jobs in June alone), is driving the demand for more housing. 🏘️

💼 Job Growth and Economic Impact

Houston’s job market is thriving. 💼 Over the past 12 months, the region has created 78,000 new jobs, bringing total employment to a record high of 3,460,900. Even though growth has tempered slightly compared to the past two years, the city is on track to hit 3.5 million payroll jobs by the end of 2024. This is a testament to Houston’s resilience and economic strength. 🌟

🏢 Investments and Property Trades

Investors are taking notice of Houston’s growth. 💰 During the second quarter, 16 multifamily properties were traded, with acquisitions averaging $132,535 per unit—a 17.4% increase from Q1 2024. However, this is still a 7.1% decrease compared to the same period in 2023. International investors, institutional investors, and REITs have all been active in the market, with varying levels of buying and selling.

One standout transaction was the sale of Park At Voss by Houston-based Barvin Group. 🏘️ This Class B, 810-unit property in the Galleria/Uptown submarket had a 93% occupancy rate at the close of the quarter. Another notable deal was California-based Berkshire's acquisition of Tinsley On The Park in Montrose/Museum/Midtown, a Class A, 365-unit property with a similar occupancy rate. 📈

🛠️ Houston's Thriving Infrastructure

Beyond the multifamily market, Houston’s overall infrastructure is expanding rapidly. 🛤️ Nearly $20 billion in construction contracts were awarded in the first five months of this year alone—a 64.3% increase from the same period last year. Residential, non-residential, and non-building projects are all seeing growth, which speaks to the city’s broader economic vitality. 🌆

📝 Wrapping It Up

So, what does all this mean for Houston’s multifamily market? Simply put, it’s a great time to be involved in real estate here. Whether you’re an investor, a property manager, or someone looking to move, Houston offers a dynamic and growing market with plenty of opportunities. 🌟

Stay tuned for more updates on Houston’s real estate scene, and don’t forget to like, comment, and subscribe for more insights! 🔔 #HoustonRealEstate #MultifamilyMarket #HoustonGrowth #RealEstateInvesting #HoustonBoom #InvestInHouston

I’m an experienced Commercial Real Estate Broker, please feel free to reach me at 281-222-0433.

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Bill Rapp, CRE Broker

I am a Houston commercial broker, with residential experience, as well as a lending background. I have been in the real estate industry for 14 years and counting, and I have worked in many roles within the industry and each has given me a unique perspective of the industry as a whole. My dedication to clients is rooted in this industry knowledge, but also includes my desire to go the extra mile in networking to source off market opportunities for my clients. Me and my team at eXp Commercial have a cutting-edge technology package that gets the widest exposure for each transaction. eXp Commercial offers a nationwide network through which we can deliver the best exposure and professional advice to achieve our clients’ goals while also minimizing their risk. Clients appreciate my methodical method of discovery in our initial consultation. Through which we can get to know each other and their specific’s business’s needs and objectives on a granular level. Our processes help navigate each transaction and its potential pitfalls through to a successful outcome for our clients. It is my stated goal to provide our clients with extensive market analysis and expertise that fosters innovative solutions and rewarding commercial real estate opportunities.

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