Houston rents will begin rising more quickly in 2020, especially for affordable housing stock, according to a forecast from multifamily consulting and research firm ApartmentData.com.
The rent growth would follow years of post-Harvey market corrections. Rents spiked after Hurricane Harvey displaced many Houstonians, with the rate of increase slowing as families moved back into their homes. Rent growth in Houston was among the slowest in the nation this past year, according to online guide RentCafe.
But ApartmentData.com projects that Houston rents will rise as much as 4 percent in 2020, above the area’s 20-year average annual increase of 3.2 percent. It said rent increases for older, more affordable apartment buildings will likely account for the lion’s share of that growth.
Houston has seen a boom in high-end apartments; ApartmentData.com said luxury apartments with rents greater than $1,750 will have “some issues.”
In 2019, Houston saw the addition of 15,000 apartment units. Roughly 90 percent of the apartments were occupied, and the average rent, taking into account various promotional discounts, was around $1,050. Both figures lagged behind those of the Austin and Dallas area.
Publication: Houston Chronicle