6 months after Harvey, short-term renters moving on

Some Houstonians displaced by Hurricane Harvey have started moving out of shortterm rentals and back into their newly renovated homes or ones they've purchased since the flood.

While the apartment move outs are being felt in complexes in west Houston and Katy that took in a large number of flooded homeowners, the overall multifamily market is poised to benefit from improving job growth this year, apartment analyst Bruce McClenny said.

“The good news for the whole area is that economically we've really picked up the pace. We've got a great job forecast for this year considering where we've been,” said McClenny, president of ApartmentData.com.

The average rental rate is $1,017 per month, a 5.1 percent increase from last year, according to a March report from ApartmentData. Occupancy across the Houston area is at 89.5 percent, up from just over 88 percent a year ago.

The urban core, however, which had a glut of units for lease pre-Harvey, still has a fair amount of vacancy.

Aris Market Square is advertising three months free rent with a 13-month lease. Catalyst, near Minute Maid Park, is offering up to two months free. Alexan Downtown and Block 334 are giving two months off and prorating the discount throughout the term of a lease.

Landlords should find some solace in the fact that only about 7,500 new units will open this year, compared with 21,000 for each of the last two, McClenny said. Next year, no more than 6,000 should open.

“Lower deliveries and higher job growth,” he said, “will play in the hands of the landlords.”