Business

Houston Rents Might Have Hit Market Bottom

Researchers expect the pace of rental growth to increase by the end of the year.

For rent sign
Rent in Houston grew by just 0.3 percent year-over-year in August.

In August, rents in Greater Houston grew only 0.3 percent from the previous year, according to a report by apartment data firm Yardi Matrix.

But the research firm expects the year-over-year number to rise to 1.6 percent by the end of the year.

 “We believe that Houston has bottomed out, that it is going to begin a slow transition to a positive range,” said Doug Ressler, who created the report.

“We think it has hit the bottom, if you will.”

That forecast is based on signs that the oil and gas industry is recovering from the downturn and also on the trend of more people renting instead of buying homes.

But the rent increase is affecting different parts of the Houston area differently. Ressler said from January to August, rent grew by 1.3 percent in the wealthier western part of the region and by 2.3 percent in the eastern part.

“The blue collar is where you’re seeing the resurgence of demand much more significantly than you are in terms of west Houston,” the researcher said.

He said that’s because more job growth is happening in blue collar areas right now.

 

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Florian Martin

Florian Martin

Business Reporter

Florian Martin is currently the News 88.7 business reporter. Florian’s stories can frequently be heard on other public radio stations throughout Texas and on NPR nationwide. Some of them have earned him awards from Texas AP Broadcasters and the Houston Press Club. Florian is a native of Germany. His studies...

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