WHERE RENTS HAVE DROPPED The latest stats provided to 11 News by Houston-based Apartment Data Services show that at the newest complexes, rents for all size of apartments are now averaging $1,108. That’s 11 percent cheaper than last year. Rents are about the same for complexes built a decade ago, averaging $739 a month. And rents are actually up slightly at older complexes, where they’re averaging $570 a month. ‘I’d say the inner loop is probably the softest,’ said Bruce McClenny of Apartment Data Services. ‘They’re about 40 percent occupied,’ McClenny said of brand-new complexes that traditionally take a year or two to fill up. . . . We’re told rents are holding steady for many apartments in far west Houston, Katy, The Woodlands, Kingwood, and Sugar Land. Demand remains strong in those places. Why? The energy industry, for one. ‘The energy corridor’s taking off again in west Houston. There’s lot of growth, people relocating day in day out,’ according to Shannon Proteau, another agent with Find It Apartment Locators. But, in a twist, Proteau said it’s also because families forced out of homes by foreclosure are attracted by highly-rated suburban school districts.” [11 News]
Sign up for the Newsletter
I agree that older complexes in the suburbs have raise their rents. A well maintained older complex in cy-fair that was at $570 a year ago is increasing rent $120 for a 12month renewal. But, I don’t see the softer side of the higher end innerloop market. The Fairmont Museum District filled up in about 7 months last fall and is now increasing rents on all renewals.
BGK –
Do you live in Fairmont? What’s your source of info on the 7 months to fill up and increasing rents?
I only ask b/c I’m tired of looking at that barren lot in front of it! Not expecting anything soon, but solid rentals there can’t hurt. It’s a great location for those willing to do a little walking
no, a friend does….she renewed after an inital 6 month lease. thinking about moving apartments (dog park) she found most all the units were rented, just a handful left, and none left in her floor plan.
The reason the inner loop is “soft” is simple math. A tiny apartment is now something like $1,200 per month. Meanwhile, my mortgage on my inner-loop house is just over $1,300.
It’s a no-brainer.
My 2 bedroom, 1 bath in a small, recently updated (within last 3 years — granite, hardwoods, laundry) complex within walking distance of the major museums, Hermann Park, Rice, and the rail isn’t even close to $1200 a month, much less $1300 plus property taxes plus taking care of my own maintenance plus plus plus. You can find a great place inside the loop for way less than the mortgage across the street — you just have to be willing to put in the foot work.
I have to disagree with rents being soft in the inner loop. I just relocated here in January and, unless things have changed, I found rents exceedingly high and availability low.
Granted, I did not want a cookie cutter apartment, but I was blown away by the prices. I looked at the new Gables property on Kirby and they were $2,500 minimum a month for a two bedroom. The kicker was that they’d only accept a 18 month lease. I thought that was crazy. The Alexean on Westheimer was a little cheaper at $2,000 per month but it didn’t seem well built.
I preferred condo’s or houses to apartment complexes and most of them were in the $2,000 plus range. Those under $2,000 that were nice rented almost immediately after coming on the market.
I wound up in a two bedroom house in Montrose for $2,600 and everyone I talk to seems to think I got an ok deal.
I have to concur that it seems more expensive to rent than buy. I certainly could have bought for less in this market but, being new to town, didn’t want to dive in to home ownership immediately.
Anyone that says Houston is cheap hasn’t looked at inner loop real estate.
Here’s another kicker, although certainly not fact-based: apartment complexes are more likely to have cars broken in to, because thieves can get several at once.
Just because the apartment complex is SUPPOSED to keep up with maintenance doesn’t mean that they DO. At least you know who’s responsible for what when you own your own home.