Multi-Family Report Shows Positive Future for Houston Market

Kathryn Koepke
Manager, Market Research
kkoepke@poconnor.com
713.686.9955, ext. 4239

Scott Sherrill
Director of Marketing
ssherrill@poconnor.com
713-686-9955, ext. 4264

• Class B and C properties are poised to reap the most benefits in terms of occupancy and rental rates from the collapse in the subprime lending market. Former homeowners with foreclosures on their record will not have good enough credit ratings to rent Class A apartments.
• Both population and job growth are expected to be between 2% to and 3% in 2007.
• The multifamily market is expected to experience continued lingering effects from Hurricane Katrina, as the final wave of evacuees moves out of Houston area apartments. Positive job and population growth should prevent the market from significantly declining.
• Average area cap rates are expected to remain relatively stable, increasing only slightly, and for the multifamily market to remain highly active.
• Continued building of high-end luxury projects. Developers will continue to look for prime locations near job centers, upscale retail/entertainment developments, and premium in-town locations, as well as the suburban deals where there is high demand.

The study, compiled by the research and consulting department at O'Connor & Associates, tracks information including the sale and purchase of properties in the Houston area throughout the year, pertinent issues facing Houston’s multi-family market, an overview of multi-family development in 2006, an economic and demographic overview of Houston and provides some market expectations for 2007.

“This is the most comprehensive multi-family market report in the city,” said Kathryn Koepke, manager of the research and consulting department at O'Connor & Associates. “This study is a complete look at what happened in Houston’s multi-family market in 2006 and makes some analyses on what developers, owners, investors and anyone else involved in the multi-family market might expect in 2007.”

The report provides nearly 100 pages of information and is filled with charts and graphs showing correlations between occurrences and their effect on the market as well as historical trends for vital information such as development, rental rates, occupancy rates, absorption and more.

The summary is currently being pre-sold through O'Connor & Associates and will be available in June for regular purchase. Pre-sale orders are discounted up to 30 percent from off the regular price.

For more information on the summary and how to purchase, contact Kathryn Koepke at 713.375.4239.

About O'Connor & Associates

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