National apartment developer Greystar has launched a brand of apartment communities — starting with a new complex in Houston — with rent increases tied to inflation.
Charleston, S.C.-based Greystar manages thousands of apartments nationally, but it also develops its own communities. While most skew toward higher end, luxury communities, the company wanted to expand the supply of so-called workforce housing or ‘missing middle’ housing. Greystar said rents would increase upon lease renewal and the price hike across the Ltd. portfolio would be based on the consumer price index posted in January of each calendar year, if it is more than 3 percent. For example, if the CPI were up 6 percent then renters could expect an equal percent increase.
Greystar is advertising one-bedroom rents at Ltd. Med Center starting at about $1,100 with two bedrooms at $1,325-$1,400. For comparison, average rents across the greater Medical Center area are about $1,400, including both new and old construction and across all apartment types, according to real estate firm Transwestern.