According to Colliers International Houston President Pat Duffy, Houston has a major problem. We have an oversupply of office space, hotels and apartments but the market does look good for shopping centers and industrial buildings.
Only 125 apartment units were absorbed in the fourth quarter of 2015 while some 29,000 units are still under construction. With over 100 apartment complexes now under construction, the Houston multifamily industry is destined for negative absorption this year.
In other words, many of the new apartment projects will have units that remain vacant for a long a time. And the oversupply of office space will not vanish quickly either. The suburban class A office vacancy rate has risen to 16%, up from 10.2% at the end of 2014. Over 8 million square feet of office space is under construction in Houston and the oversupply will become acute as the buildings are completed.
The retail vacancy rate was 5.8% at the end of 2015, down from 6.1% a year earlier. The Houston industrial market is doing excellent, sitting at around 5% vacancy rate at the year’s end. For more information, click here to visit Realty News Report.
The future of the Houston real estate market is changing no doubt. It’s looking like it’s going to be a buyer’s market this year so contact us today if you’re looking to move from an apartment into your very own home. Why rent when you can buy and actually use that money towards something you own? We work with lots of excellent lenders that can assist you qualifying for a very competitive mortgage whether it’s your first mortgage or not.
Whether you’re looking to buy, sell or lease, contact us today as we can help!
