Good news for landlords: the eviction ban issue is behind us, and rents are going up.
In fact, rent is at an effective rate per sq ft of S1.46 or $1,267/month. Since September 2020, this increase reflects a 13.5% rise. As of March 2021, we have witnessed steady growth in our occupancy rate from 88% to 92%. It’s no surprise given that Texas ranks No. 2 for the most moved-to state in 2020, behind Florida according to Move.org.
As rent goes up, the more popular floor plans are the smaller efficiencies. These units remain popular with an increase in rate from $1.80/sq ft in September 2020 to nearly $2/sq ft one year later. While efficiencies are popular unit options, we also saw growth on the other end of the spectrum: 3 BRs + Dens went up in the last year to $1.34/sq. ft. The Frisco/Colony and Little Elm area of the Dallas submarket has the most new construction occurring at a rate of 20% more than East Austin. The trend for new leases looks strong for Q4 2021 through Q1 2022.
As more and more people relocate to Texas, we will likely see the trend continue for the 3BR + Den units accommodating families while they house hunt and determine where they want to settle down in Texas. Cost-conscious renters and those still impacted by the pandemic are renting efficiencies. The open areas of outlying suburbs of the larger cities remain attractive for growth opportunities in the multi-family housing market.
For a local Houston perspective and to discuss potential investment opportunities in the region, contact Propserity Management Services today.