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Colliers: Houston multifamily net absorption, construction starts up in 4Q2023

HOUSTON – The local multifamily market ended 2023 with overall positive year-over-year absorption, according to the 4Q2023 market report from Colliers Houston..

Net absorption dropped 5 percent to 3,125 units during the fourth quarter due to softening in Class A properties, but the 2023 year-end total of 10,805 absorbed units indicated a 135 percent increase from 2022’s absorption of 4,602 units.

Construction increased slightly from the prior quarter to 23,323 units, representing a 12.7 percent year-over-year increase.

Occupancy remained at 89 percent while adding 3,128 units, a 35 percent drop from the third quarter.

Average monthly effective rent decreased from recent highs to $1,261 per unit in the fourth quarter, but rents are up 0.6 percent year over year.