Houston Multifamily Market At A Glance

At Keller Williams Preferred Commercial we consider it a privilege to be able to lead our community and clients in making financially sound, progressive, sustainable and even environmentally friendly real estate investments. We create approaches meticulously tailored to meet our client’s needs and to help them accomplish their real estate goals. 

 As you know Houston faced some challenges in 2016 with the slowing down of the oil and gas industry which led to many job losses. This thereby has influenced the real estate industry too. The impact was mostly felt in Class A properties where the absorption rate slow downed a bit. You’ll be happy to know that Houston has remained stable overall despite the market fluctuations. The graph below illustrates how Houston fares compared to other major metropolitan cities.

According to the U.S. Bureau of Labor Statistics as of October 2016, there were 13,400 jobs added over the last year for a .4% increase.

According to the U.S. Bureau of Labor Statistics it appears that the most of the jobs added were from the education, health services, leisure and hospitality industries.

It is the employment growth in the education, health services and the other sectors others mentioned above that helps create a demand for Class B and Class C properties. This in turn helps to keep rent gains positive and vacancies low. Houston continues to see a need for Class B properties, but there is even more of a need for Class C value add properties. There is little to no inventory available therefore many lost opportunities. In 2016 the average price per unit was approximately north of $75,000. The minimum price per unit was approximately $23,000 and the maximum was about $217,000.  As for those properties that have some or have been totally renovated and updated then the average price will look all together different. The size of these multifamily complexes range from 5 units to north of 300 units.

Disclaimer: While the information in this reading is deemed reliable, trustworthy and accurate. It is up to the reader to verify any facts or contact Chalmette Ray for more information.