The rock-bottom price of oil has taken a toll on Houston’s multifamily market: The vacancy rate is projected to hit 7 percent by the end of the year, and rent growth is below the national average.
However, Iggy Grillo, vice president of development for Stream Realty Partners LP, sees an area for growth in Houston. His company is planning to open six active-adult communities—restricted to residents 55 and older—in the city over the next few years.
In addition to standard high-end amenities—security cameras, resort-style pools and coffee bars—the communities will offer social events, such as trips to the opera and water aerobics. The company recently broke ground on a 129-unit active-adult community in northwest Houston.
Grillo is bullish on the submarket because baby boomer apartment residents have retirement income unaffected by the city’s energy economy and have often just experienced an influx of cash from the sale of their homes.