Apartment Prices Going Down Anytime Soon?

[houstongal]

I'm looking for an apartment in the inner loop/medical center area and the average price for a decent apartment seems to be around $800 - $900. At these prices one might as well buy a house. What is causing this increase in rent and do y'all think they'll be going back down soon? I'm looking to move within the next month and these rent costs are scaring me!

[sowanome]

I wish you the best, but apartment prices will not decrease anytime soon inside the loop.

#1. The subprime housing mkt is pretty much obsolete, so this equates to more renters. (More Demand)

#2. Unfortunately for every new apt. building that is built, there is an old apt. building being demolished. (Very Slow increase of Supply)

#3. More jobs are moving to downtown or the Galleria area, so more people want to live closer to work (More Demand)

#4. Gas Prices, Enough said. "At least we are in Texas" a very cheap gas state! (More Demand)

#5. More mixed use developments in the inner loop equates to an increase supply of apartments, but it also increases Demand (Go Figure!)

#6. Good luck! Maybe you can find a landlord that just wants stable renters!

[rps324]

I used to be in the apartment business and this is typcially their "slow time." You will get the best deal you will get in the winter. About April it starts to get busy again and any specials dry up and rates typically increase.

The closure of Allen House has got to have an impact on the market. That place was huge! Plus all the other factors previously mentioned.

About the only way to get a deal is to find something from an individual landlord. That can be a time-consuming task. It usually involves a little luck and timing. Driving areas and looking for signs, (If it is an old person renting it out, they aren't going to be on craigslist!) Also check individual things on craigslist, backpage.com and possibly the papers.

Edited October 27, 2007 by rps324

[houstongal]

I used to be in the apartment business and this is typcially their "slow time." You will get the best deal you will get in the winter. About April it starts to get busy again and any specials dry up and rates typically increase.

The closure of Allen House has got to have an impact on the market. That place was huge! Plus all the other factors previously mentioned.

About the only way to get a deal is to find something from an individual landlord. That can be a time-consuming task. It usually involves a little luck and timing. Driving areas and looking for signs, (If it is an old person renting it out, they aren't going to be on craigslist!) Also check individual things on craigslist, backpage.com and possibly the papers.

Allen House closed?! When did this happen? Wow. I'm really going to have a hard time getting the place I want now. Unfortunately for me, most of the apartments I have my eyes on are owned by corporations, not individual landlords.

[rps324]

Allen House closed?! When did this happen? Wow. I'm really going to have a hard time getting the place I want now. Unfortunately for me, most of the apartments I have my eyes on are owned by corporations, not individual landlords.

Maybe it is time to expand your horizons and put your eyes on some other options. Duplexes and such in Montrose & Heights, for example. There is a whole block of nice duplexes over on Merwin by Afton Oaks as well. I would check into some things like that.

[sowanome]

I used to be in the apartment business and this is typcially their "slow time." You will get the best deal you will get in the winter. About April it starts to get busy again and any specials dry up and rates typically increase.

The closure of Allen House has got to have an impact on the market. That place was huge! Plus all the other factors previously mentioned.

About the only way to get a deal is to find something from an individual landlord. That can be a time-consuming task. It usually involves a little luck and timing. Driving areas and looking for signs, (If it is an old person renting it out, they aren't going to be on craigslist!) Also check individual things on craigslist, backpage.com and possibly the papers.

I agree, The Individual Landlords are the way to go, they are much more compromising based on the personal relationship! The memorial club, on memorial across from the Jackson Hill apts, were also demolished to in order to build new and more expensive apts. Rents in Houston is starting to go crazy, esp when a group tears down a current complex to build another one on the same sight!

[TheNiche]

Allen House closed?! When did this happen? Wow. I'm really going to have a hard time getting the place I want now. Unfortunately for me, most of the apartments I have my eyes on are owned by corporations, not individual landlords.

If you could please define exactly what you want in an apartment, that might help us give you an honest assessment of what is realistic or what alternatives might be better-suited to you. There is a lot of different product out there, in many varied locations, and it just isn't easy to generalize.

For instance, I could probably point you in the direction of a place within about 20 minutes of the TMC that would rent a 1/1 for just shy of $400/mo. ...not that you'd probably want to live on Laura Koppe Dr. I could also cite a place where rent for a 1/1 starts just over $2,000 and goes up to nearly $3,500.

Perhaps if you'd tell us which complexes you've looked at so far?

[TheNiche]

I wish you the best, but apartment prices will not decrease anytime soon inside the loop.

#1. The subprime housing mkt is pretty much obsolete, so this equates to more renters. (More Demand)

#2. Unfortunately for every new apt. building that is built, there is an old apt. building being demolished. (Very Slow increase of Supply)

#3. More jobs are moving to downtown or the Galleria area, so more people want to live closer to work (More Demand)

#4. Gas Prices, Enough said. "At least we are in Texas" a very cheap gas state! (More Demand)

#5. More mixed use developments in the inner loop equates to an increase supply of apartments, but it also increases Demand (Go Figure!)

#6. Good luck! Maybe you can find a landlord that just wants stable renters!

#2 is false. While demolition activity does have an impact, it certainly isn't a 1-to-1 ratio of construction to demolition; likewise, what is demolished is largely non-competitive with new and intermediate product. The point is well-taken, but there is no need for hyperbole. In actuality, supply is coming on very strong. While I don't anticipate a true glut of new supply such as would force major concessions, I also don't anticipate the market tightening at any time in the forseeable future.

With respect to #6: [Niche raises hand]. I've got a 1/1 condominium built in 1981. Easy access to TMC via Fannin or Almeda. Water/cable paid, W/D units, ground floor, quiet neighbors. Rennovations planned: new flooring, new dishwasher, new paint job, resurfaced tub, new bathroom sink and cabinets; can begin almost immediately if you're willing to commit to it, otherwise I'm not in a rush and will likely wait a couple more months. $700/mo. Also willing to sell if interested.

[spiderman]

I'm looking for an apartment in the inner loop/medical center area and the average price for a decent apartment seems to be around $800 - $900. At these prices one might as well buy a house. What is causing this increase in rent and do y'all think they'll be going back down soon? I'm looking to move within the next month and these rent costs are scaring me!

How big of a space are you looking for?

[jb4647]

...Then there was the influx of Katrina refugees.....

The price of apartment rent was what finally convinced me to purchase a condo inner loop....no more driving 20 miles each way and I now have an investment....

[jim1126]

Unless you are looking for more than one bedroom, $800-$900 inside the loop is a STEAL nowadays. If you find one, grab it and keep it. Many nicer inner loop apartments - even one-bedrooms - are approaching and often exceeding the $1,000 mark.

[missmsry]

Good sized duplexes (2-3 bedroom) are going for around $1500 and much higher in the Montrose/RO area.

[houstongal]

If you could please define exactly what you want in an apartment, that might help us give you an honest assessment of what is realistic or what alternatives might be better-suited to you. There is a lot of different product out there, in many varied locations, and it just isn't easy to generalize.For instance, I could probably point you in the direction of a place within about 20 minutes of the TMC that would rent a 1/1 for just shy of $400/mo. ...not that you'd probably want to live on Laura Koppe Dr. I could also cite a place where rent for a 1/1 starts just over $2,000 and goes up to nearly $3,500.Perhaps if you'd tell us which complexes you've looked at so far?

I'm basically llooking for a one bedroom apartment, average sized (700+ sqft), washer & dryer in unit, something that has a big closet or extra storage, because I have a lot of stuff. Something that looks decent and is not too old, and not more than 15 mins from the downtown area. I'm not asking for much; just a place I'm happy to come back to at the end of the day. I've pretty much looked at most of the apartments in the medical center/inner loop area (holly hall, 288, 610).

#2 is false. While demolition activity does have an impact, it certainly isn't a 1-to-1 ratio of construction to demolition; likewise, what is demolished is largely non-competitive with new and intermediate product. The point is well-taken, but there is no need for hyperbole. In actuality, supply is coming on very strong. While I don't anticipate a true glut of new supply such as would force major concessions, I also don't anticipate the market tightening at any time in the forseeable future.With respect to #6: [Niche raises hand]. I've got a 1/1 condominium built in 1981. Easy access to TMC via Fannin or Almeda. Water/cable paid, W/D units, ground floor, quiet neighbors. Rennovations planned: new flooring, new dishwasher, new paint job, resurfaced tub, new bathroom sink and cabinets; can begin almost immediately if you're willing to commit to it, otherwise I'm not in a rush and will likely wait a couple more months. $700/mo. Also willing to sell if interested.

Do you have any pictures?

How big of a space are you looking for?

About 700+ sq ft.

[rps324]

There is a block of duplexes on the edge of Afton Oaks. These are great places, I know this particular one. They have washer/dryers and it is almost like having your own house. It's inside the loop and in a nice area. If you can stretch your price range a little I would highly recommend checking this out.

4738 Merwin

[sevfiv]

^that is a good price for a 2/2 in that location. I bet it won't last very long. How many duplexes are there in all?

[rps324]

Pretty much the whole block west of maybe Lancashire St?

[satriela]

I manage a small (15 unit) older apt complex in Montrose. We had about 2 years of stagnant rent prices and were FINALLY able to raise rents this summer. What you are looking for is not very prevalent. And the only advice I can give you is: if you find a place you like, JUMP ON IT! And: be a good tenant. There are so many people looking to live in Montrose, if a tenant gives me trouble I know I can find another quickly. It sounds like you are looking for something pretty new (a 1 bedroom WITH a washer/dryer) so most likely you will be dealing with a big corporation. Be upfront and honest and try your best to create a personal relationship with your property manager (if you ever meet them) because it will make a difference when you need something. Good Luck!

[sunsets]

You might want to check out the Heights as well. Lots of garage apartments ranging from 500-900 sq. feet. We rent our 1 bedroom 800 s.f. apartment for $750/month, not including utilities. We share the washer/dryer with the tenant. We're 2 or 3 miles from downtown, close to bus lines, and more quiet than the big complexes.

In fact, there's a garage apartment for rent across the street right now. I have no idea what it's like inside, or what the laundry situation might be, but if you want the contact number, send me a PM.

[mkultra25]

I manage a small (15 unit) older apt complex in Montrose. We had about 2 years of stagnant rent prices and were FINALLY able to raise rents this summer. What you are looking for is not very prevalent.

I lived in an older 1BR in a similarly small complex in Montrose from 1986-1994. When I moved in, the rent was $250. When I moved out, it was $300. The downside was that the landlord had to be repeatedly prodded to fix anything when it broke - I went without A/C for almost two weeks once at the beginning of summer before they finally swapped out the dead window unit with a slightly less aged one. They wound up prorating my rent for that two-week period. Ah, the good old days.

[sargento03]

I've browsed through craigslist many times just to see what rents are going for...and have seen many 1 bedroom units for about 600-700 (some include bills) in the montrose area. Most of them are duplexes and smaller complexes. Personally, if I were looking for a place to live I would jump on those places. The duplexes usually have more square footage than your average apartment and have more character. Some of those 10-20 unit complexes are also nice, and from visiting friends, it seems like the residents are closer knit than some of the larger apt complexes.

[satriela]

I lived in an older 1BR in a similarly small complex in Montrose from 1986-1994. When I moved in, the rent was $250. When I moved out, it was $300. The downside was that the landlord had to be repeatedly prodded to fix anything when it broke - I went without A/C for almost two weeks once at the beginning of summer before they finally swapped out the dead window unit with a slightly less aged one. They wound up prorating my rent for that two-week period. Ah, the good old days.

Ain't it the truth! The owner of my complex is usually good about getting things fixed on time, but what you are describing sometimes happens with smaller individually owned complexes. The upside is that we are MUCH more willing to work with tenants who run into hard times and much more restrained with the rent increases.

I've browsed through craigslist many times just to see what rents are going for...and have seen many 1 bedroom units for about 600-700 (some include bills) in the montrose area. Most of them are duplexes and smaller complexes. Personally, if I were looking for a place to live I would jump on those places. The duplexes usually have more square footage than your average apartment and have more character. Some of those 10-20 unit complexes are also nice, and from visiting friends, it seems like the residents are closer knit than some of the larger apt complexes.

My 1 bedrooms rent for around 555 ALL BILLS PAID!!! Royal blue carpet included for free I agree with you that some steals (including mine, tho I'm full) are to be found in this area but the OP sounded like she was looking for something more AMLI Midtown than Montrose funky. I LOVE living in this little complex because we all know each other and there is a definite sense of community. We look out for each other. Some of my tenants have lived here for 15+ years. Its a good living...

[musicman]

In the past few years, throngs of apartment dwellers ditched their rental digs as subprime credit and loose lending standards allowed more Houstonians to buy homes.

But now that the days of easy money have ended and the apartment market strengthens, renters are feeling the pain.

Last year, renters were paying an average of $659 a month. As of October, the average rate was up to $681.

full, article

Edited November 30, 2007 by musicman

[satriela]

In the past few years, throngs of apartment dwellers ditched their rental digs as subprime credit and loose lending standards allowed more Houstonians to buy homes.

But now that the days of easy money have ended and the apartment market strengthens, renters are feeling the pain.

Last year, renters were paying an average of $659 a month. As of October, the average rate was up to $681.

full, article

I fully agree with the article. It's a good time to own an apartment complex in Houston.

[TheNiche]

I fully agree with the article. It's a good time to own an apartment complex in Houston.

I agree that now is a good time to own a complex in Houston, but I strongly suspect that the health of our market is more attributable to economic performance than to tighter lending practices.

[satriela]

I agree that now is a good time to own a complex in Houston, but I strongly suspect that the health of our market is more attributable to economic performance than to tighter lending practices.

I don't know the reasons for why demand is so high, just that it is. Personally, I haven't had any possible tenants tell me that they were looking because they were in foreclosure.

[jmancuso]

i'm paying about $800 for a blah apartment in the galleria. the complex is nice but the buildings are old and compared to newer ones, becoming obsolete.

[editor]

I paid $830 for 800 sq.ft. at what used to be called Live Oaks in Midtown. I moved out when there was a huge surge in demand after TS Allison and my landlords decided to raise my rent to $1,300/month. I ended up in the Dakota Lofts where I had a little under 1,500 feet for $1,400/month. That was in 2003. I can't imagine what it goes for now.

[houstongal]

Ain't it the truth! The owner of my complex is usually good about getting things fixed on time, but what you are describing sometimes happens with smaller individually owned complexes. The upside is that we are MUCH more willing to work with tenants who run into hard times and much more restrained with the rent increases.

My 1 bedrooms rent for around 555 ALL BILLS PAID!!! Royal blue carpet included for free I agree with you that some steals (including mine, tho I'm full) are to be found in this area but the OP sounded like she was looking for something more AMLI Midtown than Montrose funky. I LOVE living in this little complex because we all know each other and there is a definite sense of community. We look out for each other. Some of my tenants have lived here for 15+ years. Its a good living...

Hahaha! Perhaps...