Texas Apartment Market Posts Second Straight Month of Occupancy Increase

Largest Increase in the Houston Metro Area

Houston, TX (April 20, 2007) - All four major Texas markets posted the second straight month of occupancy increase according to the March 2007 O'Connor & Associates Texas Apartment Market Update.

While Houston recorded the largest monthly increase, it continues to post the lowest overall occupancy, with Austin posting the highest. Houston was the only market not to post an increase in rental rates in March. Demand was strong for a second straight month, with Houston recording the highest monthly absorption levels.

Austin apartment market occupancy increased 0.06 points in March to 93.30% despite occupancy declining 0.18 points over the past year. Average rents gained $0.002 per square foot (psf) over the month to $0.95 psf, bringing the annual increase to $0.023 psf. The market absorbed 63 units in March and has absorbed 1,737 units over the past 12 months.

Dallas/Fort Worthapartment market occupancy gained 0.17 points over the month to 89.68%, but is still down 0.76 points since this time last year. Rents increased $0.001 psf in March to $0.872 psf, and are up $0.005 psf over the last year. Monthly absorption was 1,297 units, bringing annual absorption to 935 units.

Houston apartment market occupancy was up 0.32 points over the month to 88.49% but occupancy has decreased 2.59 points since this time last year. Rental rates were unchanged over the month at $0.833 psf. Rents have gained $0.012 psf since this time last year. March absorption was 2,913 units. The market has absorbed -5,834 units over the past 12 months.

San Antonio apartment market occupancy gained 0.22 points in March to 90.31%, but it is still 1.21 points lower than one year ago. Rental rates climbed $0.002 psf to $0.832 psf, and have increased $0.016 psf over the last year. Monthly absorption was 397 units, bringing year-over-year absorption to 1,004 units.

For a complete report on the March Texas apartment market, visit http://www.poconnor.com/file_repository/Texas_Apt_Market_Update_March2007.pdf. The report measures demand (absorption), occupancy, rates and apartment inventory.

About O'Connor & Associates
O'Connor & Associates, a Texas-based national real estate service firm providing appraisals, market research, cost segregation studies and federal and ad valorem tax reduction services, has been in business since 1974. Patrick O'Connor, MAI, president of O'Connor & Associates since 1983, is frequently acknowledged by national publications as a respected source of information on real estate trends. Visit www.poconnor.com/marketresearch.

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