Friday, December 07, 2012

Houston, We Don't Have A Problem

Here is a comprehensive article from the New York Times (via yahoo.finance) on the national apartment market.  It's full of information and worth reading.  The authors are amazed that even Houston is seeing strong demand for multifamily units.  The article ends on this high note:
Andy McCulloch, the head of residential research at Green Street Advisors, a real estate analysis firm, said it was a misconception that growing momentum in the single-family housing market would hurt the rental market.
“If the single-family market gets better it could help jobs, it could help incomes and you could see rent continue to rise,” he said. Constraints on lending, Mr. McCulloch said, will also keep a lid on the number of new homeowners.

“If I was an apartment landlord, the only thing that would really freak me out from the buying side is the return of easy credit,” he said. “But that doesn’t seem to be coming back anytime soon.”

1 comment:

Daniel Smith said...

Nice post. I personally don't find it surprising that there is an increase in demand for urban multifamily development in Houston.

Considering the trend of "millennials" migrating inward and those who don't wish to spend long hours accessing the overcrowded suburbs, it may proof to serve as a more convenient life style..

Its also interesting how Mr. McCulloch points out the misconceptions b/t SF housing vs. conventional multifamily renters. This should be interesting to watch as it plays out, especially as more apartment product comes online and the remaining SF home market finishes hitting the bottom.