Posted Jul 25, 2018, 8:59 PM
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Join Date: Jan 2009
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Katy, Montrose and Heights submarkets hot for future apartment projects, data shows
Quote:
While Houston has about 10,000 apartment units currently under construction across the city and surrounding suburbs, an additional 19,000 units could soon be on the way. A recent analysis of proposed apartment projects from Houston-based ApartmentData.com counts 69 proposed projects, with the most activity planned in the Montrose, Katy and Heights submarkets.
Bruce McClenny, president of ApartmentData.com, estimates when market conditions are favorable, as much as 75 to 80 percent of proposed projects move ahead and are completed. In "poorer economic times," such as when oil prices began to drop around 2014, McClenny says likely "50 percent at best" of proposed deals will move ahead.
"This is not by any stretch a puny proposed list," McClenny said. "It's kind of a 'middle-of-the-road list,' mainly because a lot are left over from the previous development cycle."
While Hurricane Harvey boosted Houston's apartment occupancy rates in the months following the storm, it also moved up the start of the next development cycle, McClenny said. He first predicted the last development cycle that started in 2013 would last until next year, but instead Harvey moved the cycle forward to mid-2018.
Right now, he said developers are trying to get everything lined up — close on land, go through the permitting process and line up funds.
Out of the 69 proposed projects, 11 are in Montrose while nine are planned for the Katy submarket. The Heights/Washington Avenue submarket has six proposed projects followed by downtown's five proposed projects.
McClenny expects to see more proposed projects moving forward.
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