RENTAL MARKET Local rental rates continue climb
Market snapshot Apartment rents are rising locally, though not as fast as they were in 2021.
Texas Medical Center/Brays Bayou
Greater Houston area
Highland Village/ Upper Kirby/West U
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BY SHAWN ARRAJJ
to $1,414 in November of that year, they have increased to $1,466 since then. “We all knew this was going to slow down, temper itself back to more normal times,” McClenny said. McClenny said the Houston metro area is still more a ordable than Dallas and Austin. Houston’s average rent hit $1,233 in May, which compares to $1,475 in Dallas and $1,648 in Austin. San Antonio has the cheapest average rent of the four cities at $1,193, accord- ing to ApartmentData.com. “That’s, in a relative sense, more positive for people that live here and want to live here,” McClenny said. Moving forward, McClenny said prices are likely to continue to rise. If rental rates were to drop, it likely would not be for desirable reasons, he said, giving job losses as an example. McClenny said Texas generally does a good job of adding apartment supply, but it still is not adding supply fast enough to bring rents down. “I don’t think it could add supply
Recently completed: 403 Under construction: 257 Proposed: 1,088
Recently completed: 326 Under construction: 631 Proposed: 1,680
Recently completed: 22,340 Under construction: 14,498 Proposed: 33,996
Rents have continued to rise in Houston in the rst half of 2022, driven by an in ux of new residents to the area and a single-family home market that is pushing more people to consider renting. Those trends can be seen in the Bel- laire, Meyerland and West University areas, according to survey data from ApartmentData.com. Between February and May, average monthly rent prices rose 3.3% and 3.7% in two local submarkets tracked by the agency—Highland Village/ Upper Kirby/West U and Texas Medical Center/Brays Bayou, respectively. That compares to an average rent price increase of 2.7% across the Greater Houston area over that time. However, the rate at which rents have been increasing so far in 2022 has been slower than the pace seen in 2021, ApartmentData.com President Bruce McClenny said. Although rents in the Texas Medical Center submarket jumped from $1,201 in February 2021
$1,954
$1,877
$1,891
$1,853 $1,414
$2,000 $1,500 $1,000 $500 $0
$1,757
$1,466
$1,422
$1,414
$1,293
$1,233
$1,201
$1,179
$1,155
$1,092
MAY 2021
AUG. 2021
NOV. 2021
FEB. 2022 MAY 2022
100% 96% 92% 88% 84% 80% 0%
93.4% 91.7%
92.8% 91.4%
92.1% 90.1%
92.5% 91.5%
92.1% 91.7%
91.3%
91.1%
90.2%
89.9%
86%
SOURCE: APARTMENTDATA.COM COMMUNITY IMPACT NEWSPAPER
fast enough to make a di erence this year and next,” he said. Moving forward, McClenny said the six-month trends are generally a good
predictor of what the next six months might bring. He said the market will probably settle down to some degree in 2023.
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