Houston Multifamily Market Report
Widening of Rents Between Apartment Tiers Insinuates Brewing Tailwinds for Lower-Cost Units
Cost considerations will enhance lower-tier demand. Production and exports of energy goods accelerated in recent months, after sanctions were placed on Russia, supporting job gains in Houston’s central industry. Elements of the supply chain for energy, as well as a multitude of other products, constitute a significant portion of employers in the market. The trade, transportation and utilities sector, as well as the manufacturing sector, comprise about 28 percent of total workers in Houston — a larger share than the national proportion. Many of these personnel traditionally receive wages in-line with costs for mid-tier apartment rentals, but conditions are changing. More residents in Houston will prioritize cost factors when searching for apartments in the coming quarters, after the rent spread between property tiers swelled last year.