Apartment rents in Dallas-Fort Worth are stabilizing after surging last year.
DFW rent growth of 0.3% through May, double-digit growth in 2022, Dallas Business Journal Reportciting ApartmentData.com.
Why have rents dropped? With DFW’s population and home sales prices surging throughout the pandemic, demand for condos is high and landlords can charge more.
The region will lead the nation in terms of population growth in 2021, adding approximately 97,000 new residents. To accommodate them, developers start building projects faster than a dog with a bone. A Record number of new condos are under construction in DFW, with more than 74,000 units under construction at the end of March. The rental market is now more balanced due to increased supply.
However, many multifamily developers have put their projects on hold due to high interest rates, rising construction costs, bank failures and fears of a recession.Therefore, leasing and develop Activity has cooled in the region and across much of the country.
“We’ve entered this new phase,” John Griggs, co-CEO of Presidium, a Dallas-based multifamily developer, told the media. “It’s much harder to close a deal. There’s no doubt about it.”
Still, DFW’s multifamily segment remains relatively strong. The region leads all major markets in Texas with a 91.6 percent apartment occupancy rate. That’s down slightly from 93 percent a year ago.
Houston’s occupancy rate was 89.9 percent, Austin’s was 89.1 percent and San Antonio’s was 89.4 percent, according to the outlet. Rental growth rates also rose in Houston, up 1.8 percent year-over-year, while in Austin, they fell 2.7 percent.
— Quinn Donoghue
