Montrose Hottest Multi-family Market in Houston
For most US markets, the urban core is getting the lion’s share of new multifamily development, but Houston takes it to a new level: there are 32 properties with about 8,700 units under construction. That’s a lot of new carpet and phonebooks.
Those numbers come from Axiometrics VP of research Jay Denton and prez Ron Johnsey who track multifamily data around the country. (We like to think of them like hard-boiled detectives chasing down data, but we probably watch too much film noir.) Jay tells us of the new construction in the works, 15 of these properties (4,300 units) are being built in the Montrose/River Oaks submarket, which is favored by investors. It’s the hottest submarket in Houston with rents increasing at an annual rate of 9.1% in January, up from 6.1% last year, Ron tells us.
In the past year, rents for Class-A and B properties in this submarket have jumped by 8% and 10%, with occupancy rates at 94% and 96%, respectively. Jay says the gap for rents between A and B properties is probably the widest in the country at about 38%, making B properties more affordable for renters who want to live (and walk to the museums) in this high-end submarket.