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Texas State Recap of Space Absorption 2016

February 2, 2017

In 2016, San Antonio was the only large market in the entire state to maintain absorption concurrent with new construction, while Houston saw the largest decline in occupancy falling to 87.9%, the lowest it has been since the great recession. The Dallas-Ft. Worth market led the state in effective rent increases rising 6.4% to $1,053, San Antonio rents increased by 2.8%, Austin rents increased by 3.6%, and Houston rents declined. Overall, the state had absorption numbering in over 32,000 units for the year, but with 56,000 units having come online it was inevitable that occupancy would decrease, it is expected that average occupancy will fall below 90% by the end of 1Q17.

ALN 2016 State Recap