Corpus Christi Apartment Stats Continue to Impress

Image of Camden South Bay Apartments in Corpus Christi

Corpus Christi has ranked among the nation’s best tertiary apartment market performers over the course of the past few years. Stellar stats registered once again in 1Q 2014.

The metro’s early 2014 occupancy rate stood at 95.6%, continuing the streak of occupancy above the 95% mark seen since the middle of 2012. Perhaps even more impressive was annual growth in effective rents for new leases that came in at 6.2%, almost double the U.S. norm.

Corpus Christi is a beneficiary of the country’s ongoing energy boom. While the metro technically lies just outside the boundaries of the Eagle Ford Shale energy fields in South Texas, it’s the closest major port to this energy production cluster, so shipping activities are growing by leaps and bounds. Tourism, also key in the local economy, is expanding rapidly, too. According to the Bureau of Labor Statistics (BLS), today’s job count in Corpus Christi tops the metro’s pre-recession high by 5.5%. Furthermore, many of the jobs added in this cycle have been fairly high-paying positions. BLS figures show annual wage growth averaging 7.7% so far during 2014, and that big number comes on top of wage growth that surpassed 13% in 2013.

Compared to other spots in Texas, Corpus Christi has an apartment inventory that’s still very heavy on 1980s-generation units. Within that specific niche, it’s interesting to see just how expensive the product is by Texas standards. Among the eight Texas metros that rank among the country’s 100 largest apartment markets, Corpus Christi is in a virtual tie with Austin for the highest-priced 1980s-era units. Both register typical monthly pricing just over $800 — $809 in Austin and $802 in Corpus Christi. Those prices well exceed the rates of $725 in Dallas and $708 in Houston, while average rents for the 1980s-vintage stock falls under the $700 mark across San Antonio, Fort Worth, El Paso, and McAllen/Brownsville.

 

(Image source: Camden South Bay Apartments)

 

Greg Willett

Vice President, Research and Analysis, RealPage

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Greg Willett heads the research and analysis team at MPF Research, tracking and evaluating trends in multifamily market fundamentals. He thus is well versed on multifamily market conditions and activity nationally, by metro, and in many individual neighborhoods. Greg has written articles for periodicals such as Multifamily Executive, Urban Land, and Multifamily Trends, and is a regular contributor to numerous other publications serving the multifamily housing market. He also serves as the primary author of MPF’s Market Dynamics newsletter that highlights apartment sector news and insights from the MPF Research team of analysts. Greg began his tenure in the multifamily industry as a data analyst and later served as a research consultant specializing in feasibility evaluations of new apartment community development and existing property acquisition. He holds a Bachelor’s degree from Western Kentucky University and a Master of Liberal Arts degree from Southern Methodist University.

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