TEXAS: Healthy As A Horse
Rumors of flagging multifamily demand in Texas have been greatly exaggerated. DFW, San Antonio, and Houston will overcome multifamily oversupply issues and thrive between now and into 2017, and even Austin will absorb some major product coming online in the next three years, JLL multifamily guru Jeff Price tells us. (Young people looking to rent is one of the few renewable resources on Earth.) Austin will suffer some short-term stress from high new construction, he says, but with 100 people moving there per day we’re more worried about its housewarming gift supply.
While revenue and rent growth in Austin may be limited, demand drivers like job growth are still there (and just as good as they are for DFW and Houston) to support the city’s 96% occupancy, Jeff says. Though looking into his crystal ball, he forecasts that Austin and Dallas job growth will level a bit just like construction starts, while Houston’s construction pipeline will see some growth this year. On Jeff’s horizon: a new grandbaby, and his youngest kid is getting married in June.
