A comprehensive assessment of the Houston apartment market shows that the major concentrations of competitive apartment space are located in the Montrose/River Oaks submarket, amounting to 66,368 units and 9.3% of the metropolitan inventory, followed by Briar Forest/Ashford, with a 7.1% share, and Far Northwest Houston Montgomery County (6.8%). Since the beginning of Q3 2014, the fastest growing area has been the Montrose/River Oaks submarket, adding 26,017 units over that period, or 16.6% of total metropolitan apartment completions.
Distribution / Warehousing
The Houston warehouse/distribution market is comprised of 308.7 million square feet in eleven geographic concentrations ranging in size from the 59.9 million square foot Northwest submarket to the Montgomery County submarket, which accounts for 3.3 million square feet. In the ten-year period beginning with Q3 2014, the Northwest submarket has experienced the greatest introduction of new inventory, 21.5 million square feet, amounting to 24.7% of all new competitive stock added to the market.
Flex / R&D
The Houston Flex/R&D market is comprised of 35.0 million square feet in eight geographic concentrations ranging in size from the 9.1 million square foot Interstate 10 North/US Route 290 Corridor submarket to the Eastside submarket, which accounts for 1.7 million square feet. In the ten-year period beginning with Q3 2014, the Southside submarket has experienced the greatest introduction of new inventory, 575,000 square feet, amounting to 26.4% of all new competitive stock added to the market.
Office
The Houston office market is comprised of 190.5 million square feet in sixteen geographic concentrations ranging in size from the 41.0 million square foot Central Business District submarket to the Brazoria/Galveston submarket, which amounts to 500,000 square feet. In the ten-year period beginning with Q3 2014, the West/Katy Freeway submarket has experienced the greatest introduction of new inventory, 6.8 million square feet, amounting to 32.6% of all new competitive stock added to the market.
Retail
A comprehensive examination of the Houston retail market indicates that the major concentrations of competitive retail space are located in the Southwest/Fort Bend County submarket, amounting to 16.4 million square feet and 16.3% of the metropolitan inventory, followed by Farm-to-market Road 1960/Far Northwest, with a 14.1% share, and Westwood/Bellaire (10.4%). Since the beginning of Q3 2014, the fastest growing area has been the Southwest/Fort Bend County submarket, adding 3.3 million square feet over that period, or 28.9% of total metropolitan retail completions.
Market Trends
2024 Population
7,599,440
Since
2024
Population Change
+0.36%
Household Average Income
$206,669.00
Number of Households
2,725,860
Employment
White/Blue Collar Jobs
31%
Office (2024)
13%
Industrial (2024)
Market Trends
Apartment
Inventory
Units/SF
Q1 2024
Q2 2024
Total
707,343
711,476
Completions
4,395
4,133
Conversions*
0
0
2024 Q2 Rent
Asking Change†
0.7%
Effective Change†
0.7%
Inventory: Constrabsorp
Q1 2024:
1.5 Ratio
Q2 2024:
1.3 Ratio
Rental Costs/Lease Rates‡
Asking
Q1 2024:
$1,303.27
Q2 2024:
$1,312.96
Effective
Q1 2024:
$1,211.44
Q2 2024:
$1,219.65
Gross Revenue
Q1 2024:
$1,204.60
Q2 2024:
$1,212.44
Absorption/Occupied Stock
Q1 2024:
0.5%
Q2 2024:
0.5%
Stock Net Absorption (Units)*
Stock
*Units that have been converted from a non-market rate multifamily subtype to a market rate subtype. †Percent change from the previous time period. ‡For Apartment properties, rent is a weighted average quoted as monthly rent per unit.
Market Trends
Distribution / Warehousing
Inventory
Units/SF
Q1 2024
Q2 2024
Total
307,998,000
308,739,000
Completions
1,524,000
741,000
Conversions*
0
0
2024 Q2 Rent
Asking Change†
0.9%
Effective Change†
1.2%
Inventory: Constrabsorp
Q1 2024:
0.6 Ratio
Q2 2024:
0.3 Ratio
Rental Costs/Lease Rates‡
Asking
Q1 2024:
$7.54
Q2 2024:
$7.61
Effective
Q1 2024:
$7.32
Q2 2024:
$7.41
Gross Revenue
Q1 2024:
$6.88
Q2 2024:
$7.00
Absorption/Occupied Stock
Q1 2024:
1%
Q2 2024:
1%
Stock Net Absorption (Units)*
Stock
*Units that have been converted from a non-market rate multifamily subtype to a market rate subtype. †Percent change from the previous time period. ‡For Retail and Industrial properties, rent is a weighted average quoted as annual NNN rent per square foot.
Market Trends
Flex / R&D
Inventory
Units/SF
Q1 2024
Q2 2024
Total
35,007,000
35,007,000
Completions
0
0
Conversions*
0
0
2024 Q2 Rent
Asking Change†
0.6%
Effective Change†
0.3%
Inventory: Constrabsorp
Q1 2024:
0 Ratio
Q2 2024:
0 Ratio
Rental Costs/Lease Rates‡
Asking
Q1 2024:
$9.65
Q2 2024:
$9.71
Effective
Q1 2024:
$8.85
Q2 2024:
$8.88
Gross Revenue
Q1 2024:
$9.14
Q2 2024:
$9.16
Absorption/Occupied Stock
Q1 2024:
0.3%
Q2 2024:
-0.4%
Stock Net Absorption (Units)*
Stock
*Units that have been converted from a non-market rate multifamily subtype to a market rate subtype. Negative value indicates a loss of market rate units, positive value indicates a repurposing to market rate rental units. †Percent change from the previous time period. ‡For Retail and Industrial properties, rent is a weighted average quoted as annual NNN rent per square foot.
Market Trends
Office
Inventory
Units/SF
Q1 2024
Q2 2024
Total
190,542,000
190,542,000
Completions
409,000
0
Conversions*
0
0
2024 Q2 Rent
Asking Change†
0.4%
Effective Change†
0.6%
Inventory: Constrabsorp
Q1 2024:
0.3 Ratio
Q2 2024:
0 Ratio
Rental Costs/Lease Rates‡
Asking
Q1 2024:
$29.64
Q2 2024:
$29.77
Effective
Q1 2024:
$24.62
Q2 2024:
$24.77
Gross Revenue
Q1 2024:
$21.97
Q2 2024:
$22.20
Absorption/Occupied Stock
Q1 2024:
0.8%
Q2 2024:
0.6%
Stock Net Absorption (Units)*
Stock
*Units that have been converted from a non-market rate multifamily subtype to a market rate subtype. †Percent change from the previous time period. ‡Office properties are a weighted average quoted as an annual gross rent per square foot.
Market Trends
Retail
Inventory
Units/SF
Q1 2024
Q2 2024
Total
44,192,000
44,192,000
Completions
0
0
Conversions*
0
0
2024 Q2 Rent
Asking Change†
0.2%
Effective Change†
0.3%
Inventory: Constrabsorp
Q1 2024:
0 Ratio
Q2 2024:
0 Ratio
Rental Costs/Lease Rates‡
Asking
Q1 2024:
$21.64
Q2 2024:
$21.69
Effective
Q1 2024:
$18.63
Q2 2024:
$18.69
Gross Revenue
Q1 2024:
$19.36
Q2 2024:
$19.42
Absorption/Occupied Stock
Q1 2024:
-0.1%
Q2 2024:
0.1%
Stock Net Absorption (Units)*
Stock
*Units that have been converted from a non-market rate multifamily subtype to a market rate subtype. †Percent change from the previous time period. ‡For Retail and Industrial properties, rent is a weighted average quoted as annual NNN rent per square foot.