Last year was very devastating for both residents and investors in Houston. Hurricane Harvey displaced many people and left countless buildings uninhabitable. However, 2018 is looking to start a new chapter in multifamily investing. It’s estimated that the multifamily market is set to have its biggest year since 2015.
The Effects of the Storm
When Hurricane Harvey hit the city, no one was prepared for the vast destruction it would leave behind. Many people found themselves looking for new places to live after the storm destroyed homes and properties across the city. It’s estimated that 135,000 homes and 100,000 apartment units were damaged.
With so many people looking for new places to live, multifamily buildings are in huge demand. Multifamily occupancy is now at 90.1 percent, which is the highest number since 2015. Rental rates have gone up, with $999 being the average monthly rate, and investors are now flocking to the city.
Crude oil prices in Houston have also dramatically risen. Companies are hiring more people to compensate for this boom in prices. Houston alone looks to add about 70,000 new jobs in the oil sector as a result.
The Long term Outcome
2018 is looking to be a fruitful year for multifamily investors in Houston. With supply and demand at an all-time high, it should be easy to fill empty units. The majority of new units are expected to be built this year, with the number tapering off in 2019.
Big lenders, such as Fannie Mae and Freddie Mac, are looking to reduce their green financing programs. This may pose a challenge to investors looking for more favorable loan terms. Submetering apartment units is one way to make up for this setback.
Submeter Solutions provides nationwide submetering services for multifamily units of all sizes. Individual utility meters are installed for each unit, and tenants receive a monthly bill for their personal utility usage. Submetering makes it easier to offer competitive rental rates, thus ensuring you are able to fill all the empty units in your multifamily building. With such a huge demand for affordable living in Houston, submetering is a no-brainer for investors looking for tenants.