Houston’s apartment surplus will come in handy after Harvey
Houston Chronicle, August 30, 2017
Houston has one of the highest apartment vacancy rates in the nation, and that’s a good thing in the wake of Hurricane Harvey.
With 47,000 vacant units spread across the metro area, Houston is in a good position to meet the upcoming demand for apartments by people displaced by the storm. Another 21,000 units are in the process of being built, although some may have been destroyed, according to real estate information firm RealPage.
“It is one market that has the capacity to take on displaced residents,” said Jay Parsons, vice president for data analytics at RealPage. “That wouldn’t be the case in most cities across the country right now.”
Active building that began before the oil bust has pushed Houston’s vacancy rate to 7.1 percent, making it among the highest in the country, according to RealPage. The surplus ranges from high-price inner Loop regions such as Montrose to neighborhoods west, south north and east of Houston with rents priced at or below the regional average of about $1,030 per month, according to RealPage.
Landlords will likely be flexible with leasing terms, offering shorter durations for those who need lodging while their homes are repaired.
“These days of 12-month leases or nothing are over. A lot of these properties already offer a matrix of different terms to their prospects,” Parsons said.
There’s no precedent for the sheer number of people who will need housing, but Houston accommodated many Katrina evacuees in 2005.
“They’re willing to be flexible on their policies in order to accommodate the needs that are out there,” Parsons said. “I think you’ll see a lot of that this time around too.”
Apartments will be a top choice for renters displaced by the storm because they’re typically more flexible on their lease terms and have properties ready for immediate move in, said Amy Bernstein, broker/owner of Bernstein Realty.
Residents also want to be near their homes while repairs are underway, and apartments offer more options.
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