>500
1-50 0 51-150 151-300 301-500
Multifamily units fill in as area moves toward build-out From the cover
Two-minute impact
Multifamily housing snapshot, 2023-33
99
362 units in Stafford, while Lenox Sienna opened in September with 248 units in Missouri City. Meanwhile, two developments will break ground in the fourth quarter of 2024 in Missouri City. • Sueba USA will bring a Class A 346-unit development to Fort Bend Town Center III, Sueba USA officials said. • Dhanani Private Equity Group’s Territory at Missouri City, a 280-unit complex, is coming near the same intersection, Dhanani officials said. “[We] are encouraged by the growth of Missouri City and have been interested in developing the area for some time,” Dennis Blanchard, vice president of development and legal affairs for Sueba USA, said in an email. “This site was too good to pass up for a signature Sueba multifamily project.”
More than 12,300 apartment units are set to open within Fort Bend ISD’s boundaries between 2023-33, accounting for about a third of all new incoming housing units, according to PASA’s report. In the next five years, a bulk of the apartments are poised to open near commercial areas or along major thoroughfares, such as Hwy. 59 and Fort Bend Parkway Toll Road, Cates said. Accessibility and walkability to grocery stores, restaurants and retail is a determinant for developers deciding where to build apartments. “That’s a lifestyle that a lot of people are really looking for,” she said. Apartments also sprouted in mixed- use areas last year, according to MRI ApartmentData. Filament at The Grid opened last June with
Units under construction Total units: 3,848 Units planned Total units: 2,932 Units in probable future Total units: 1,480 Fort Bend ISD boundary
1464
90
59
1092
6
521
N
SOURCE: POPULATION AND SURVEY ANALYSTS/COMMUNITY IMPACT
Hundreds of apartments are also planned to join mixed-use redevelopment projects in Sugar Land including The Pearl—part of Lake Pointe Plaza at the former Fluor Daniel building—and the Imperial Sugar district, Community Impact previously reported. Sueba USA is also set to bring a
273-unit apartment complex called Marketplace Lofts to the corner of Imperial Boulevard and Ulrich Street, within the historic Imperial Refinery District, Blanchard said. However, the timeline is contingent on the rest of the district’s build-out.
Sugar Land/Stafford/ Sienna
Hwy. 288 South/ Pearland West
Katy/Cinco Ranch/Waterside
Houston metro area
Zooming out
Multifamily rental rates in southwest area
The Houston Association of Realtors reported only 40% of Houston-area households could afford a median-priced single-family home in the first quarter of this year. The monthly mortgage payment during that time was $2,340, per HAR. With 19,000 apartment units under construction in the Greater Houston area and another 33,000 planned for the region as of June 1, Jankowski said supply exceeds demand for multifamily housing. “An industry rule of thumb holds that Houston absorbs one apartment unit for every six jobs created,” he said in the report. “Houston will need to create roughly 114,000 jobs to absorb what’s currently under construction. The partnership’s forecast calls for the region to create half that many jobs— 57,000—this year.”
Patrick Jankowski, chief economist and senior vice pres- ident of research for the Greater Houston Partnership, said in a May multifamily market update that Houston has shifted from a landlord-friendly to a tenant- friendly market because: • Average multifamily occu- pancy is below 90%. • Rental rates have fallen over the last year. • Incentives such as free rent and security deposit waivers are prominent. • Developers continue to overbuild. The Sugar Land/Stafford/ Sienna submarket’s average occupancy rate dropped from 92.1% in June 2022 to 87% this May, according to MRI Apart- mentData. The average monthly rent increased slightly during this time, from $1,455 to $1,468.
99
$1,485
$1,200 $1,300 $1,400 $1,500 $1,600 $1,100 $1,000
$1,468
610
10
$1,449
6
$1,260
59
288
$0
N
June
Jan.
Jan.
May
2022
2023
2024
SOURCE: MRI APARTMENTDATA/COMMUNITY IMPACT
The big picture
Multifamily occupancy rates in southwest area
Average unit square footage
100%
948
966
967
894
87.5%
87%
90%
Total units operating
17,574
14,600 45,139 758,545
86.1%
80%
82.3%
Total complexes operating
70%
73
57
158
3,194
0%
11 80,655 New, under construction and planned units 5 35
June
Jan.
Jan.
May
2022
2023
2024
18
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