Apartments signify drag to city permit values



Continue clicking to see some of the apartments that are about to open in Houston soon. less Construction crews work on the new Dolce Living apartments at 210 West Grey on Friday. The city now has a glut of residential and commercial real estate.

Continue clicking to see some of the apartments that are ... more Construction crews work on the new Dolce Living apartments at 210 West Grey on Friday. The city now has a glut of residential and commercial real estate. Photo: Michael Ciaglo, Staff Photo: Michael Ciaglo, Staff Image 1 of / 90 Caption Close Apartments signify drag to city permit values 1 / 90 Back to Gallery

The apartment market continues to be a drag on the local economy, even with some signs of construction activity in other sectors, the latest city of Houston building permit data show.

The number of building permits issued in July totaled $962.3 million, down 1.6 percent from the same time last year. Year-to-date the city's building permits totaled $4.4 billion, down nearly 9 percent from the same period, according to the city's Department of Public Works & Engineering and Planning & Development Services.

The residential permit values offset gains in commercial permits. Permits for nonresidential projects rose 40 percent in July, while residential permits fell 61 percent. Single-family permit values decreased 23 percent and multifamily dropped 87 percent.

Economists have widely acknowledged the multifamily market in Houston is overbuilt. Developers delivered 27,000 apartment units in the region for the 12 months ending in July and another 18,000 are under construction. If developers break ground on no new projects, the market will need to absorb 20,000 units.

The market absorbed 7,600 units in July. Apartment Data Services reports that another 15,000 units have been proposed.