Houston multifamily sector projected to be overbuilt in 2016

At least 18,000 multifamily units to be delivered in 2016 coupled with job growth of 22,000
  • The oversupply is concentrated within four regions.
  • Two-month concessions are already becoming commonplace.
  • Houston's eastside (Baytown) and southwest (around Sugar Land) won't be as affected by multifamily deliveries.

The volume of multifamily unit deliveries in Houston during 2016 will nearly match job growth tallies for the year. This, along with the fact that developers are more commonly offering two-month concessions for newly delivered projects, suggests Houston’s multifamily sector is entering overbuilt status.