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.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.