Business

Rents Grew Slowly Across Greater Houston In 2016

The market has felt the effect of the oil slump and a glut of new apartments.

Rents in Greater Houston have been kept down due to the effects of the oil downturn and an abundance of new apartments.

Editor’s note: This story was originally published on December 20, 2016. 

In November, rents only grew by 1.6 percent year-over-year in Greater Houston – the 8th slowest among the nation’s 75 largest metropolitan areas.

Doug Ressler, a researcher with Yardi Matrix, which compiled the data, said that can be attributed to the economic downturn and the resulting job losses.

“Secondarily is that over the last two years, Houston has seen on the average a total of about 40,000 units, apartments, that have been added to the inventory, which has obviously hurt the rental market somewhat,” he said.

It has hurt the rental market but it’s good news for renters.

The average rent in a Houston apartment complex was $1.055 in November. That ranks us near the middle.

But Ressler expects rents to grow faster in the new year, thanks to more job growth and fewer new apartments.

“So we really think that the rental market is beginning to see the signs of comeback, that it has bottomed out,” he said. “It is making slight appreciable, positive gains.”

But Houston, along with other Texas cities, should remain one of the more affordable metro areas for renters. Ressler said that’s because there’s so much space here, which gives residents more options.

 

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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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