Houston is forecast to lead the nation in employment growth for the third consecutive year, creating migration-related demand and benefiting local apartment properties, according to a first-quarter Apartment Research Report by commercial brokerage Marcus & Millichap.

The metro’s healthy energy and construction sectors generated nearly 100,000 new positions in 2007 and will fuel economic expansion this year, the report found.

"Investor sentiment for assets in Houston will remain positive this year as demographic and employment trends stay positive due to the prevalence of the healthy energy sector, despite the national slowdown," says Michael Hoffman, regional manager of the Houston office of Marcus & Millichap, in a statement.

Following are some of the most significant aspects of the Houston Apartment Research Report:

  • Payrolls are forecast to expand by 50,000 positions, a 2.1 percent increase.

  • Builders are accelerating deliveries to 7,500 units this year, expanding for-rent stock by 1.6 percent.

  • Vacancy is forecast to end the year at 8.9 percent.

  • Asking rents are expected to reach $769 per month by year end, a 3.2 percent increase.

  • Effective rents are projected to increase to $717 per month, a gain of 3.2 percent.


***


What’s your opinion? Leave your comments below or send a
letter to the editor.


Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Time is running out to secure your Connect Now tickets at the lowest price. Don't miss out on a chance to grow yourself and your business.Learn More×
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription