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MARKET LINE HOUSTON T


he first table below displays a snapshot of the current market conditions. The graph displays the overall occupancy and effective rental rates over the past 24 months. These statistics


are derived from a continuous survey of all apartment communities in the Houston region. The effective rental rates are the calculated net of concessions and utility adjustments. The second table lists the five hottest submarkets in the Greater Houston area. There are a total of


SNAPSHOT Occupancy: Price:


Rental Rate: Size:


89.4% $778/mo.


89.3¢/sq.ft./mo. 871 sq.ft.


88.0 –


Past 12 Months: 4.3% rental rate growth 17,110 units absorbed


Operating Supply: 2,925 communities 582,434 units


Recently Opened (12 months): 21 communities 4,465 units


Under Construction: 44 communities 11,001 units


82.0 –


Proposed Construction: 59 communities 18,178 units


HOTTEST SUBMARKETS Over the Past Three Months % of Market Absorbed 1.9% 2.7% 2.3% 1.6% 1.2%


Rank Submarket


1 Woodlands/Far North 2 Galveston/Brazoria


3 Lake Houston/Kingwood 4 Katy/Far West 5 Galleria


TEXAS


DALLAS/FT. WORTH Occupancy: 91.8% Price:


Rental Rate: 92.6¢/sq.ft./mo. Size:


$801/mo. 865 sq.ft.


Past 12 Months: 3.7% rental rate growth 10,385 units absorbed


Operating Supply: 2,650 communities 594,282 units


SAN ANTONIO Occupancy: 91.7% Price:


Rental Rate: 90.3¢/sq.ft./mo. Size:


$757/mo. 838 sq.ft.


Past 12 Months: 3.1% rental rate growth 2,893 units absorbed


Operating Supply: 740 communities 149,612 units


AUSTIN Occupancy: 93.7% Price:


Rental Rate: 106.5¢/sq.ft./mo. Size:


$923/mo. 867 sq.ft.


Past 12 Months: 4.2% rental rate growth 2,371 units absorbed


Operating Supply: 753 communities 165,658 units


Apartment Data Services Inc. has been providing apartment data and marketing products since 1986. ADS Online covers Texas’ four largest metro areas and provides real-time access for property specific information, market surveys and historic submarket data for more than 1.3 million apartment units. For more information, contact McClenny at 800-595-8730. © 2012 Apartment Data Services Inc.


ABODE AUGUST 2012 75


Annualized Rental Rate Growth % 15.7% 11.4% 8.9%


11.1% 12.7%


– 85.0 86.0 – • • • • • • • • • • 84.0 – • •• • • • • • – 86.0 • • • – 88.0 – 87.0 • • • – 89.0


41 submarkets, and the ranking is based on the best combination of rental rate growth and absorption over the past three months. The third table distributes and analyzes concessions (specials) by classification. Concessions generally are represented by three types of specials: move-in, months free or floor plans. The effect of these specials is captured and prorated over a lease term to arrive at a percentage reduction in market or street rents.


History of Effective Rental Rate & Occupancy for All Units – 90.0


By BRUCE McCLENNY, President, Apartment Data Services


CONCESSIONS Total Units % of Average Citywide Special


Class w/Concessions Total Units All A B


277,339 26,009 99,353


C D


140,730 11,247


One Month Free = -8.33%


48% -5.9% 28% -4.4% 45% -6.0% 61% -6.5% 31% -6.6%


Effect -2.9% -1.4% -3.0% -4.2% -3.7%


Occupancy (%)


• Jul 10


Aug 10 Sep 10 Oct 10 Nov 10 Dec 11 Jan 11


Feb 11 Mar 11 Apr 11


May 11 Jun 11 Jul 11


Aug 11 Sep 11 Oct 11 Nov 11 Dec 11 Jan 12


Feb 12 Mar 12 Apr 12


May 12 Jun 12


Rental Rate (¢/sq.ft./mo.)


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