Photo: Katherine Feser, Houston Chronicle
An apartment project on South Braeswood just inside Loop 610, is one of many complexes under construction in the Houston area.
The glut of new apartments is dragging down average rents in Houston, with rent in August falling the most in six years, a new report showed.
Not everyone is getting relief, however, as renters in suburban markets with concentrations of older complexes saw the highest rent increases, Axiometrics reported.
“Though job gains in education, health care and hospitality somewhat offset the continued job losses in the energy sector, the demand for apartments is just not there,” Stephanie McCleskey, vice president of research for Axiometrics, said in an announcement.
“With new properties being completed every month, they just won’t be filled as quickly as we would like to see until job growth picks up.”
August average rent of $1,077 is down 2.9 over a year ago, the lowest growth rate since June 2010. Rent a year ago was $1,109. Occupancy fell to 93.2 percent from 94.7 percent in August 2015.
Rents fell 8 percent in the Montrose/River Oaks submarket, one of 15 regions where rents dropped.
Markets with the biggest annual rent increases in August:
- Northborough/Cranbrook, up 3.1 percent
- Imperial Valley/Greenspoint, up 3 percent
- Alief/Kirkwood, up 2.8 percent
- Baytown/San Jacinto River East, 2.4 percent
- Sharpstown/Westwood, up 2 percent
By Katherine Feser
Read the original article here.