ApartmentData.com recently presented multifamily trends at the first joint 2021 State of the Industry event with the Austin Apartment Association, the Houston Apartment Association and the San Antonio Apartment Association. Below are summaries of each market update and links to several video presentations. A summary of the Greater Dallas/Ft. Worth market is also included.
Overall, the four major Texas markets suffered in 2020. Of those markets, San Antonio performed the best while D/FW fared second-best. Houston and Austin rounded out the bottom two markets, respectively.
Between March and December 2020, the Austin apartment market slumped by $57 or -4.3%. Class A properties suffered the most, showing rent declines every month to accumulate a deficit of $141 or -8.3%. Class B product realized a loss of $45 or -3.6%. Class C fell $43 or 3.7%, while Class D continually lost rent ground and now rests at $47 less or -4.5%. 2020 was the worst year for rent growth in recent history and was the only year with a net rental rate decline in the past six years. Austin’s absorption since March has been weak, with only about 6,100 units compared with almost 9,600 units in 2019.
Between March and December 2020, the D/FW market declined by $12 or -1.0%. Class A properties performed the worst with a $52 or -3.5% decline. Class B fared better with a decline of $7 or -0.6%. Class C fell by $4 or -0.4%, while Class D lost the least ground and now rests at $3 less or -0.4%. Although slightly positive, 2020 was the worst year for rent growth in the past six years. D/FW’s absorption since March has been better than expected with 19,600 units versus 23,000 in 2019 and better than the 15,500 in 2017.
Between March and December 2020, the Houston apartment market continued to decline $21 or -2.0%. Class A properties performed the worst with a $104 or -6.7% decline. Class B fared better with a lower decline of $11 or -1.1%. Class C fell even less, by $3 or -0.4%, while Class D lost the least ground and now rests at $2 less or -0.3%. As in Austin, 2020 has been the worst year for rent growth in recent history, the only negative performance in the past six years. Houston’s absorption since March has been better than expected with 11,300 units versus 14,200 in 2019 and better than the 8,700 in 2018.
Through December, the San Antonio apartment market held steady with a $4 increase or 0.4% since March. Class A similarly held steady with a $2 or 0.2% gain. Class B similarly performed better with a gain of $4 or 0.4%. Class C fell slightly, by $1 or -0.1%, while Class D lost the most ground and now rests at $10 less or -1.4% since March. Overall, it’s not been a bad year for the San Antonio market. San Antonio’s absorption since March 2020 has been strong, beating out three of the past five years with 6,100 units compared to only 5,700 in 2019. https://www.youtube.com/watch?v=HBXpkabhpfI&t=5s
To receive the full presentation for any city, which includes a 2021 forecast and submarket analysis, please contact us at 800-595-8730 or email@example.com.