HOUSTON—Multifamily leasing activity significantly increased in 2017, with strong signs of economic tailwinds lifting the apartment market in the upcoming year, according to Berkadia's multifamily 2018 forecast report. Last year's 22,353 absorbed units doubled that of 2016, thanks to rising demand leading to a 50-basis point rise in occupancy to 92.8% in December.

Surging demand in the multifamily sector, along with accelerated hiring, is expected to increase absorption by approximately 13% in 2018, as more apartment inventory and 7,579 units are scheduled to become available by year-end.

“With a rise in population throughout the Greater Houston area, as well as anticipated total nonfarm employment expanding by 40 basis points in 2018, the apartment market will see continued investment activity with strong fundamentals,” said Ryan Epstein, senior managing director of Berkadia's Houston office. “Occupancy may reach 94.5% by December, an increase of 170 basis points from 2017.”