The research team reports the level of absorption is especially impressive given the amount of apartments that have hit the market this year in the 473,000-unit inventory, says Leslie Countryman, a market analyst with O'Connor & Associates in Houston. To date, 26 complexes with 6,506 units have come online and an additional 43 developments with 9,942 units are under construction. Of those complexes, 16 are tax-credit projects, she says.
"Absorption will continue to be positive as long as the tax-credit projects are strong," Countryman tells GlobeSt.com. "Class A apartments have been consistently strong so it really depends on class B." The class A market absorbed 2,305 units in Q2. Demand was strongest in the Far West and Champions East submarkets, which absorbed 718 and 310 units, respectively.
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