Which Apartments Are Getting Squeezed?
From The Real Estate Espresso Podcast by Victor Menasce
May 5, 2026 · 6 min · Season 9 · Episode 125
About this episode
The episode analyzes the pressures in the Houston multifamily market, particularly focusing on Class B properties facing negative absorption amidst new supply.
Today we’re looking at the Houston multifamily market, and in particular, the pressure that is building in the middle of the market. We are talking about Houston specifically. But you can take the lessons from Houston and apply them to other markets in the US and probably elsewhere. When people talk about apartment fundamentals, they often speak in broad averages. Occupancy is up. Rent is down. Absorption is positive. Cap rates are stable. But averages can hide a lot of insights. The latest Q1 2026 multifamily report from Colliers shows Houston sitting at 90.4 percent occupancy. That number was unchanged from the prior quarter, and it was actually up from 88.6 percent a year earlier. On the surface, that sounds reasonably healthy. But when you look under the hood, the story becomes more nuanced. Houston delivered 6,469 new apartment units in the first quarter. That is a big number. At the same time, the market absorbed 3,578 units. So demand was positive, but it did not keep pace with new supply. That is the first warning sign. Now, supply and demand do not affect every property the same way. The Colliers data shows that Class A properties absorbed 3,246 units in the quarter…
People in this episode
Host: Victor Menasce
Topics covered
- multifamily market
- real estate
- occupancy rates
- supply and demand
- Class B properties
- market analysis
Keywords
- Houston multifamily market
- occupancy
- rent
- absorption
- Class B properties
- real estate analysis
Mentioned in this episode
Organizations: Colliers
Places: Houston, US
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