Houston Leads in Apartment Demand

[Subdude]

Real estate

Apartment abundance could signal trouble

Growing number of single-family homes on rental market

By NANCY SARNOFF

Copyright 2008 Houston Chronicle

Houston led the nation in demand for apartments last year.

But now developers are building too many of them, said Greg Willett, vice president of research and analysis for M/PF YieldStar, a multifamily industry consultant.

At the beginning of 2008, there were 15,000 apartment units under construction in the area. In April, that number jumped to 18,000, Willett said at the annual meeting of the National Association of Real Estate Editors in Dallas this month.

Last year, there was demand for 10,000 units in the Houston area.

All the construction could mean trouble.

Though fewer renters are buying homes, as first-time mortgages for those with poor credit are tougher to get, and many qualified buyers are waiting to see if prices will drop, there's also a growing number of competing single-family homes on the rental market.

And the link..

[roadrunner]

I think it is incredible the amount of apartment complexes that are under construction all over the city. For every neighborhood inside the loop there is at least one complex under construction. In Upper Kirby there are 3 off of the top of my head. Outside the loop there are quite a few as well. I was out by the Westchase/Energy Corridor today and noticed 2 large complexes in each district.

This is a good thing for Houston in my opinion. There are plenty of ownership options so this will provide more living options for people who can't or don't choose to own.

It's also interesting to look at this from an economic standpoint. The Houston economy is chugging along, driving the demand for these units to be built, but at the same point the national mortgage crisis is also forcing people to choose to rent instead of own.

Interesting, and somewhat exciting I suppose.

[Trae]

Regent Square will be full of apartments right (or suppose to be)? Do they count developments like that in the study?

Edited May 25, 2008 by Trae

[TheNiche]

Regent Square will be full of apartments right (or suppose to be)? Do they count developments like that in the study?

Regent Square is not yet under construction, so no, it isn't counted in the tally of apartment units that are under construction. Once it is under construction, they will count it...theoretically.

O'Connor & Associates does the best job at tracking construction, as near as I can tell. They indicate 29,380 units currently under construction in 111 complexes, and while it should be borne in mind that some of those complexes are leasing units in buildings that have already been completed even as other buildings are wrapped up, this is still a better showing than MPF data. They also list 14,745 units as proposed, of which Regent Square is a part of that.