Houston Rent Is Going Up

[rapturematt]

I just watched the news and they said that the Houston rent is going to go up about 6% across H-Town. They experts are saying the reason is because of the amount of foreclosures. I think that is crazy! I am so glad I am a home owner.

[jfre81]

I just watched the news and they said that the Houston rent is going to go up about 6% across H-Town. They experts are saying the reason is because of the amount of foreclosures. I think that is crazy! I am so glad I am a home owner.

Hm....homeowners haven't had their taxes and their insurance and their interest rates shoot up at the same time?

I can handle a six-percent increase in a rent figure, that was not very much to begin with, a lot better.

I'm not one of these anti-ownership types who thinks like that because I resent that other people can afford homes - I just know my limits. And since my limits would have kept me in subprime territory as far as which houses I could afford, I'm rather glad I didn't go that route.

[memebag]

I just watched the news and they said that the Houston rent is going to go up about 6% across H-Town.

Over what period of time?

[rapturematt]

From what I understand, it is pretty immediate.

[memebag]

From what I understand, it is pretty immediate.

All the landlords got together and agreed to raise all rents 6% overnight? Do you have a link to this information?

[TheNiche]

I just watched the news and they said that the Houston rent is going to go up about 6% across H-Town. They experts are saying the reason is because of the amount of foreclosures. I think that is crazy! I am so glad I am a home owner.

Is that just for apartments, or inclusive of all types of residential property? If it's all-inclusive, it could makes some sense that the average rent increased by so much, but only because the inventory of above-average value rental properties increased so much. If you take a 'same-store' approach to determine rent increases, I'd be astounded if the region-wide average was 6%. Probably closer to half that.

[musicman]

Is that just for apartments, or inclusive of all types of residential property? If it's all-inclusive, it could makes some sense that the average rent increased by so much, but only because the inventory of above-average value rental properties increased so much. If you take a 'same-store' approach to determine rent increases, I'd be astounded if the region-wide average was 6%. Probably closer to half that.

they had the story a few mins ago.

apartments would go up on average 3.4% and higher end ones they said up to double that.

Edited January 12, 2008 by musicman

[jfre81]

I read that Houston has a 11 percent apartment vacancy rate (national average for a major city is about 5 percent)

So although the mortgage meltdown is making renters out of some former homeowners, the rents should not increase as much as it might in other markets.

[TheNiche]

I read that Houston has a 11 percent apartment vacancy rate (national average for a major city is about 5 percent)

So although the mortgage meltdown is making renters out of some former homeowners, the rents should not increase as much as it might in other markets.

Houston's vacancy has historically been high for several reasons: 1) most importantly, very low barriers to entry, 2) very low unionization, and 3) investors have confidence in the long-term viability of our economy and are willing to put money in an investment with a 45-year depreciation curve.

In the short run, we don't have nearly as much exposure to the condo conversion craze of the last several years, so our exposure to vacant or fractured condo deals being reconverted to apartments is much lower. Having said that, we don't have as much of a difference between single-family and multi-family pricing, as with cities like Phoenix, so the collapse in demand for owner-occupied homes priced less than $150k could result in more of those being leased and putting some pressure on the Class A apartment market. But because our single-family market, though not robust, is better than just about any other major city in the U.S., I suspect that this effect will be moderate, not severe.

apartments would go up on average 3.4% and higher end ones they said up to double that.

That sounds about right. And from what I've heard, swanky places like 7 Riverway have done just amazingly well. I wouldn't be surprised if we saw a copy-cat development break ground within the year.

[memebag]

Are we talking about a 3% increase over one year? Wow, that sounds like ... inflation.

Don't let the local news alarm you. Stop watching it.

[jgriff]

CNN has just posted a story claiming that Houston and Atlanta had huge drops in rental prices in 2007, of course this may not mean they won't be going up in 2008.

CNN Article

Of the 10 areas sampled by Rentometer, Atlanta and Houston rents declined the most, plunging 12.8 percent for the year. Median monthly rent for all rentals in Atlanta is now $884, and in Houston it's $779.

[TheNiche]

CNN has just posted a story claiming that Houston and Atlanta had huge drops in rental prices in 2007, of course this may not mean they won't be going up in 2008.

CNN Article

Bull____.

[jgriff]

Bull____.

That's what I thought too. It just shows you how unreliable a lot of things you hear from the media are.

[musicman]

That's what I thought too. It just shows you how unreliable a lot of things you hear from the media are.

clinton news network is the worst.