Houston among top cities nationally for multifamily construction

Paul Takahashi | Houston Business Journal

Apartment and condominium construction is booming in Houston.

Houston ranked No. 2 nationally for the number of multifamily units permitted between January and November 2014, based on an analysis of U.S. Census building permit data by CBRE Group Inc.(NYSE: CBG).

The Bayou City saw 21,550 multifamily units permitted year-to-date 2014 through November, topped only by New York City with 30,397 units permitted, according to CBRE research.

Momentum for new multifamily units also is growing.

Houston ranked No. 3 in the country for multifamily development momentum, which CBRE defined as the ratio of multifamily units permitted to the city’s population. The Bayou City permitted one multifamily unit for every 293 residents, only beaten by Austin (1:236) and San Jose, California (1:265), according to CBRE research.

Developers are rushing to meet growing demand for housing, which has been driven by Houston’s strong economic recovery and job growth after the Great Recession. Multifamily projects are sprouting across Houston, from downtown to the outer suburbs.

The city of Houston’s Downtown Living Initiative and revitalization efforts to Hermann Parkand the Astrodome is spurring residential construction in the city’s Central Business Districtand Museum District.

The Grand Parkway extension project and the new Exxon Mobil campus (NYSE: XOM) isfueling multifamily growth in the suburbs, like Conroe, Katy, Springwoods Village, The Woodlands and Tomball.

Multifamily construction is strong in several major Texas markets, not just in Houston. Dallas/Fort Worth came in No. 4 nationally with 15,218 units permitted, Austin at No. 8 with 7,968 units permitted and San Antonio at No. 24 with 3,784 units permitted, according to CBRE research.

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