The Houston multifamily market continues to make strides in a positive direction. For the first time in two years, the market’s vacancy rate has dipped into single digits, at 9.9 percent.
Multifamily fundamentals have been particularly volatile this cycle and have now started to settle back into a state of normalcy.
The area entered this cycle in 2010 with an 11 percent vacancy rate. However, several consecutive quarters of positive net absorption, coupled with minimal deliveries, led to rapid vacancy compression. At the same time, population growth, job growth, and rising oil prices resulted in strong underwriting fundamentals and developers from around the country hopped on the train of success in Houston.
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