HOUSTON – Class B apartments are at the head of the class in Texas apartment industry, according to a CBRE Research report.
The more affordable Class B units have an occupancy rate of almost 95 percent in the major metro areas of Texas, while Class A occupancy has slipped to 86.8 percent.
In Houston, Class B occupancy is at a record high, CBRE reports.
Because of high land costs, constructing a Class B-priced complex is not a viable option. The supply is further tightened as old apartment buildings are torn down to make way for new Class A tower. To top it off, some 541,000 people moved to Houston between 2010 and 2014.
The Class B market is tight. Some renters will move to outlying suburbs to find lower rents. And buying a single-family dwelling or a condo unit will be a more attractive option as rents increase.