Texas Quarterly Apartment Report

The Texas economy remained strong in the midst of the longest U.S. expansion. Payroll employment grew at a steady pace, and unemployment remained historically low. Headline wage growth rate levels were sluggish despite labor-market tightness and decreased inflationary pressure. Low interest rates and job growth supported commercial investments and pushed housing sales to a record high. Total commodity exports stalled in the first quarter and could continue to struggle amid the ongoing U.S.-China trade spat. Political tension, trade uncertainty, and a slowdown in the global economy present the greatest challenges to extending the current expansion. For additional commentary and statistics, see Outlook for the Texas Economy. The Texas Residential Construction Cycle (Coincident) Index, which measures current units under construction, followed the downward trend of the Texas Residential Construction Cycle (Leading) Index. A slowdown in construction permits hindered the Residential Construction (Leading) Index, pointing to slower residential construction going forward. Only the DFW leading index pointed toward a construction slowdown while the Austin, Houston, and San Antonio indices pointed toward higher activity. Overall market trends for the majority of Texas areas (metropolitan and micro) show positive occupancy rate growth combined with positive rent growth. Only Bryan-College Station and Lufkin registered negative rent growth. With the supply of single-family starter homes being constrained, young adults continue to rent units in the apartment sector. Click to read more at www.recenter.tamu.edu.