Boosted by strong economic growth in Texas, the state’s apartment market is healthy and slated to remain so for the remainder of 2019, according to ApartmentData.com. At $1.64 trillion in annual GDP, the Texas economy is larger than that of Canada. As job growth settles into an expected average growth rate of about 2.5%, the state’s economy should remain on healthy footing.
Many Texas markets experienced a slow spot somewhere in 2018, but with 2.5% long-term job growth, ApartmentData.com projects positive rental growth and occupancies over 90% for Austin, San Antonio, Dallas/Ft. Worth and Houston.
Austin Delivers Highest Rent Growth and Occupancy
Austin leads the pack with 3.4% rental growth and 94% stabilized occupancy. This trend is supported by he continued expansion and corporate relocation of tech companies, especially in the north
and northwest areas of Austin.
San Antonio Grows Consistently
Following a typically slow winter season, San Antonio rebounded to deliver an annualized rental growth rate of 3.3% in June. With a job growth rate of 1.8% in the last 12 months, San Antonio maintains consistently and steady growth in its apartment market.
Dallas Remains Stable
Rental rate growth in Dallas/Ft. Worth slowed slightly in the last 12 months to 2.4% as 19,481 new units were delivered, with another 30,323 units under construction. The DFW apartment stable occupancy rate remains strong at 93.6%. Once the new units are absorbed, rental rate growth is expected to resume given the area’s projected 2.9% job growth.
Houston Attracts Multifamily Investors
Houston’s multifamily market continues to rebound from the effects of the oil recession and Hurricane Harvey that led to rate flattening in 2018. Following a chaotic period when apartment construction financing was minimal, investors are freeing up capital for apartment construction, spurring a new development cycle with nearly 20,000 units under construction. Rental rate growth is expected to return to more normal market driven long-term average growth in 2019.
ApartmentData.com provides data and marketing services in the four major Texas markets of Austin, Dallas/Ft. Worth, Houston and San Antonio, along with eight cities across the southeastern and southwestern U.S.Â Â for property owners, managers, supervisors and other professionals in the multifamily industry. Call 1-800-595-8730 to discuss your needs with one of ApartmentData.com’s experienced customer service representatives.