Ten-X Commercial, a commercial real estate sales platform situated in Irvine, California, discovered Houston's anticipated rental unit rate expanded and falling vacancy rates were found to be better than other markets examined.
By 2022, apartment rents in Houston showed an anticipated increment of 15.9%, while a decrease in vacancies by 150 basis points to 4.3%. As per the report, the average cost to rent an apartment in Houston can reach $1,183 by 2022.
Las Vegas can be considered as a ‘buying’ investment opportunity but Houston’s anticipated rent increases has surpassed the number by 4.4%. Besides that, other regions that top the list of such buying investments were Raleigh-Durham, North Carolina; Atlanta; and Salt Lake City.
The report names Texas as a clear winner throughout the nation when it comes to apartment buying activity in the Southwest region.
Houston city’s strong energy sector continuously aides the local economy and hence boosts apartment rents which rippled into a robust multifamily real estate market.
Chief Economist for Tex-X Peter Muoio quotes: “Millennials are a large reason why the current rental market is thriving. Though we expect homeownership in this important age group to increase over the long term, so far they remain focused on renting.”
The report's projected increase in the multifamily real estate market aligns with comparable projections made by local experts on the multifamily industry.
Many Houston-based brokers seem to be optimistic about the future of multifamily apartment complexes, despite rent rates remaining somewhat flat in recent past years.
“With mortgage rates and home prices still elevated, homeownership remains unattainable for many Americans,” the report quoted. “This allows for the rental market to remain largely unthreatened and strong, despite the slight uptick in homeownership.”