HOUSTON-The region continues humming on all cylinders, with CBRE's Q2 2013 Multi-Houstin MarketView report showing continued absorption, with demand outpacing supply. Absorption improved to 6,492 units during the quarter (up 17% from the 5,542 units reported during Q1 2013). Year-to-date absorption has already reached 12,034 and is on pace to exceed the 14,000 units absorbed during the past three years.
Occupancy area-wide topped 90%, and has increased more than 350 basis points since Q2 2011. Only the northeast was lower than 90%; though at 89.8%, the report notes that it's likely this area will top 90% by the end of Q3 2012.
Deliveries during the past quarter were 1,612 units (units under construction increased to 16,449). Though much of the construction has taken place in core submarkets (such as the Galleria and Inner Loop), much is expanding to suburban markets, such as the Energy Corridor, to the west and The Woodlands to the north.
Interestingly enough, the 1,612 unit delivery was below the 2,657 units delivered during Q1 2013. Furthermore, Houston permitting activity declined to 740 units during Q1 2013 (versus the entire year of 2012, when permitting was 14,780 units).
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