Residential rental rates continue to fall

According to Axiometrics, residential rental rates in Houston dropped by 2.9% in August, primarily due to the Montrose/River Oaks area which dropped by 8%. August was the 5th straight month of rental declines.

Occupancy fell from 94.7 percent in August 2015 to 93.2 percent in August 2016. Axiometrics were surprised that the declines were not bigger given that the Houston market added almost 31,000 new properties in 2014 and 2015 and is projected to add 25,000 in 2016. Job growth in Houston was 5% in 2014 but negative in 2015 and 2016.

Nationally rents in August 2016 increased by 2.9 percent on the prior year, while the occupancy rate of 95.2 percent was slightly below the figure from a year ago (95.4 percent).

 

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