Multifamily market momentum From the cover
In a nutshell
A multifamily housing snapshot
Units opened in the last year Total units: 1,512
Units under construction Total units: 1,661
Units planned Total units: 1,812+*
*ONLY ABOUT HALF OF PLANNED COMPLEXES HAVE ESTIMATED UNIT COUNTS AT THIS TIME.
Most of Cy-Fair’s newest apartment complexes are coming to the 77433 ZIP code—south of Hwy. 290 between the Grand Parkway and Barker Cypress Road. Boutwell Properties, a local real estate company, reports half of Cy-Fair’s single-family home sales each month are in this ZIP code, which has the highest median household income in Cy-Fair at $134,390, according to the U.S. Census Bureau’s 2022 American Community Survey 5-year estimates. Allora Parkland and Alexan Cypress Creek opened in April with 378 and 351 units, respectively. ZRS Management oversees both properties o Fry Road in Cypress. Monthly rent at these properties ranges from $1,405-$2,195. The Houston Association of Realtors reported only 40% of Houston-area households could aord a median-priced single-family home in the rst quarter of this year. The median mortgage payment during that time was $2,340 including taxes and insurance—about 86% higher than the average base apartment rent in Cy-Fair, which is $1,260, according to MRI ApartmentData.
CYPRESS ROSEHILL RD.
350
SPRING CYPRESS RD.
150
290
1960
462
99 TOLL
249
TBD
TBD
300
TBD
292
378
351
S
350
250
180
240
TBD
TBD
300
529
330
370
T
382
6
N
SOURCE: BERKADIACOMMUNITY IMPACT
Bear Creek/Coppereld/ Faireld
Jersey Village/ Cypress
Willowbrook/ Champions/Ella
Houston metro area
Diving in deeper
Multifamily rental rates in Cy-Fair
Patrick Jankowski, chief economist and senior vice president of research for the Greater Houston Partnership, said in a May multifamily market update that Houston has shifted from a land- lord-friendly to a tenant-friendly market because: • Average multifamily occupancy is below 90%. • Rental rates have fallen over the last year. • Incentives, such as free rent, are prominent. • Developers continue to overbuild. Cy-Fair’s average multifamily occupancy rate dropped from 92.3% in the second quarter of 2022 to 87.5% this May, MRI ApartmentData reported. With 19,000 apartment units under construction in the Greater Houston area and another 33,000 planned as of June 1, Jankowski said supply greatly exceeds demand. “An industry rule of thumb holds that Houston absorbs one apartment unit for every six jobs created,” he said. “At the current pace of construc- tion, Houston will need to create roughly 114,000 jobs to absorb what’s currently under construc- tion. The partnership’s forecast calls for the region to create half that many jobs—57,000—this year.”
$1,405
$1,300 $1,400 $1,500
249
45
99 TOLL
290
$1,260
$1,242
$1,200
$1,100
$1,133
$1,000
610
$0
10
N
June
Jan.
Jan.
May
2022
2023
2024
The big picture
Average unit square footage
Multifamily occupancy rates in Cy-Fair
938
910 887 894
100%
92.1%
23,065 16,942 42,107 758,545 Total units operating
87.5%
90%
87.3%
80%
Total complexes operating
83%
84
70 165
3,194
70%
New, under construction and planned units
0%
4,075 544 812
80,655
June
Jan.
Jan.
May
2022
2023
2024
SOURCE: MRI APARTMENTDATACOMMUNITY IMPACT
22
COMMUNITYIMPACT.COM
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