Houston Apartment Market Experiences Higher Rents and Lower Occupancies

Kathryn Koepke
Manager, Market Research
kkoepke@poconnor.com
713.686.9955, ext. 4239

Scott Sherrill
Director of Marketing
ssherrill@poconnor.com
713-686-9955, ext. 4264

Occupancy Levels Lowest Among Major Texas Markets

Houston, TX (June 12, 2007) - Despite a decline in occupancy for Houston-area apartment complexes in May, which continues to be the lowest of the major Texas markets, rental rate increases in May were strong. This is according to the O'Connor & Associates May Houston Apartment Update Report. The market experienced strong demand and monthly absorption figures were average compared to other Texas markets.

Houston apartment market occupancy decreased 0.32 points in May to 88.37 percent, down 2.21 points since this time last year. Rental rates per square foot (psf) posted an increase of $0.002 psf to $0.839 psf, increasing $0.014 psf over the last year. The average rent per unit increased $1.97 in May, bringing the average to $715.92. The average rent per unit gained $14.21 over the past 12 months. The market absorbed 224 units over the month but remains in the red at -3,305 units.

	Houston
Occupancy	88.37%
Monthly Change	v 0.32
Annual Change	v 2.21
Rent / Unit	$715.92
Monthly Change	^ $1.97
Annual Change	^ $14.21
Rent / SF	$0.839
Monthly Change	^ $0.002
Annual Change	^ $0.014
Monthly Absorption	224
Annual Absorption	-3,305
Units U/C	15,791
Units Planned	12,480

Source: O'Connor & Associates May 2007
Houston Apartment Market Update

For the complete report, visit http://www.poconnor.com/file_repository/Houston_Apt_Market_Update_May2007.pdf.

Houston has a total of 2,539 operating or under-construction projects greater than 25 units with a total of 520,361 units. Class A properties make up 25 percent, Class B make up 44 percent, Class C make up 27 percent and Class D make up four percent.

About O'Connor & Associates

 O'Connor & Associates, a national real estate service firm based in Texas, provides appraisals, market research, cost segregation studies and federal and ad valorem tax reduction services. In business since 1974, O'Connor & Associates is frequently acknowledged by national publications as a respected source of information on real estate trends. Visit www.poconnor.com/marketresearch.

ApartmentLink is your best source for apartment market data in Houston, Dallas/Ft. Worth, Austin and San Antonio. With information on owners, occupancy, rent, amenities, detailed property information, comparable information, and much more, ApartmentLink provides vital apartment information for on-site managers, vendors, brokers, owners and investors. The database is available online at oconnordata.com.

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