Texas Apartment Market Update – May 2006
Although all major Texas markets posted decreases in average occupancy in May, occupancy remains above 90% in all four, with Austin recording the highest at 93.02%. The lowest occupancy was found in Dallas/Fort Worth at 90.18%.
Austin has the highest average rent per square foot as well, at $0.931 per square foot (psf); Dallas/Fort Worth posted the second highest at $0.868 psf. The strongest monthly absorption was found in San Antonio, which absorbed 243 units in May. Posting the weakest absorption figures in May was the Houston market, at -477 units. Austin apartment market occupancy decreased 0.36 points in May to 93.02%, but remains 1.64 points above last year’s
level. Average rents, currently at $0.931 psf, are $0.002 psf higher than last month and $0.003 psf higher than last year. Monthly absorption returned to positive territory, as 236 units were absorbed, bringing annual absorption to 3,709 units.
Dallas/Fort Worth apartment market occupancy was down 0.17 points over the month. Currently at 90.18%, occupancy is 1.46 points higher than this time last year. Average rents increased $0.001 psf to $0.868 psf, and are $0.005 psf higher than May 2005 levels. The market absorbed 216 units over the month; annual absorption now totals 13,468 units.
Houston apartment market occupancy fell 0.19 points over the month to 90.57%, but has gained 3.75 points since this time last year. Rental rates gained $0.001 psf in May and are up $0.026 psf over the year. Absorption over the month was -477 units; however, over-the-year absorption remains well in the black at 22,628 units.
San Antonio occupancy decreased 0.31 points to 91.38%, and is up 0.17 points over the year. Rental rates posted a decrease of $0.002 psf over the month, but are up $0.010 psf since May 2005. Absorption was positive for the fourth month in a row, at 243 units, while annual absorption stands at 3,792 units.