A sagging energy sector and new development seem to be taking their toll on the Houston market, reports Ed Mayberry of Houston Public Media.
Mayberry cites a mid-year report from the Greater Houston Partnership, which says apartment occupancy is at about 90 percent. With developers poised 25,000 more units over the next two years, occupancies could fall into the mid 80's.
“Job growth was, I guess in 2014 it was around 100,000 jobs and all of a sudden in 2015 it fell off the table,” said Bruce McClenney with ApartmentData.com. “We got caught in a development stage and the job growth kind of ran out on us. So there’s more supply than demand right now, which would be a definition of overbuild.”
Single-family landlords are getting hit as well.
The inventory of single-family homes for rent has increased over the past year, and especially in the past 30 to 60 days. The market is forcing property owners to absorb increased property taxes and insurance costs.