Houston Demand Tapers Off Again
Houston apartment demand took another hit in 2nd quarter, after rebounding closer to the five-year average in the previous two quarters. At first glance, demand in Houston could appear solid, as this is the one major apartment market to log much stronger absorption in the year-ending 2nd quarter 2020 than in the year before. Houston absorbed about 7,500 units annually in 2nd quarter 2020, up from about 4,100 units the previous year. However, when compared with the market’s five-year average, Houston still has some catching up to do. On average, Houston has absorbed about 12,500 units annually since 2015. The year-over-year increase in 2020 is less an example of strength, and more the result of the 2019 number being unusually low. Additionally, Houston occupancy is still the worst among the nation’s largest 50 apartment markets in 2nd quarter, with a rate of 92.9%.