OneWall Communities sees uneven recovery in Sun Belt rental market
XLRE•OneWall Communities said the Sun Belt rental recovery remains uneven, with moderating rent declines in Houston and Tampa masking submarket risks. Parts of Houston remain oversupplied, with more supply expected over the next 18 months.
1. Rental market conditions
OneWall Communities said parts of Houston remain oversupplied, with additional supply due over the next 18 months. Concessions, collection losses and renter qualifications can undermine projected revenue, while concession data often lags by six months. Class A concessions can temporarily draw stronger Class B tenants, compressing workforce housing’s occupancy advantage until discounts expire.
2. Class B housing
The company said Class B housing benefits when Class C residents upgrade during economic growth and when Class A residents trade down during downturns.
