Houston transitioning to higher-density development as urban core strengthens. Creating a more dense and vertical urban core remains top of mind for developers as apartment construction will stay concentrated in central Houston and surrounding neighborhoods. The inflow of millennials and empty nesters to the core seeking walkable communities will support the addition of 5,000 new units to the metro’s urban submarkets in 2020, highlighted by four 20-plus story complexes. Development will also be strong west of the core in Katy where 2,700 garden units will be delivered as builders attempt to keep stride with robust household formation. Katy sports one of the tightest vacancy rates in the metro at 5 percent, trailing several northern suburbs such as Cypress, Conroe and The Woodlands. Vacancy in these suburban cities will also likely remain compressed this year as construction in these areas remains limited.