Houston Multifamily Market Report
Energy Sector Tailwinds Fuel Economic Brawn;
New Supply Geared Toward Areas of High Demand
Labor dynamics signal continued Class C strength. Houston's central industry, oil and gas production, quickly went into expansion mode as the Ukraine invasion prompted countries across the world to sanction trade with Russia. As the global price per barrel of oil shot above $100 during the majority of the second quarter, the rig count in Texas climbed from 277 at the start of 2022 to 371 at the end of July. Increased downstream operations greatly benefit the Houston economy. The natural resource and mining employment sector was the fastest growing on a percentage basis during the first half, followed by leisure and hospitality, and then construction. Job creation supports housing demand, while wages in all of these industries typically align with rental rates at low- to mid-tier apartments. Among multifamily segments, Class C vacancy contracted by the largest magnitude year-over-year at 270 basis points through June.