The day after the owner announced that the 896-unit complex would be torn down and replaced with an urban mixed-use development, one nearby apartment complex raised its rents for one-bedroom units by about $60 a month, said Drew Pursell of In the Loop Properties, a residential leasing firm.
Pursell wouldn't name the complex -- and he said the rent increase could have been the result of other factors -- but he expects more rents to rise in the area as the displaced Allen House tenants create more demand.
"Places are getting five and six leases a day from Allen House, and they're running out of apartments," Pursell said.
Tenants may have a tough time finding similar properties.
Because of its age, rents at Allen House have been lower than other area complexes, but its units are nice and well-maintained.
Many residents pay less than $800 a month in rent for a one-bedroom. And its unique location and amenities, like free daily shuttles into downtown, have long made it popular with students, professionals and seniors.
Not everyone agrees that the Allen House situation will affect the market.
Ric Campo, chairman and CEO of Houston-based Camden Property Trust, which owns apartments nationwide, said the market here is already so strong and big that 900 units shouldn't create any serious changes.
"We had one of the best years we've had in Houston, Texas, last year," said Campo, whose company is now building more inner-city projects.