Dallas – Fort Worth leads the country in new apartment construction with approximately 23,500 new rental units under construction. The fuel for the multifamily construction boom is 111,000 jobs added in the last year, which lead the nation. Despite the new rental units added, vacancy rates or at very low levels, at about 6%.
Jay Parsons, an apartment market analyst with MPF Research says, “These new units are leasing up very, very fast. We have a lot more supply on the way.” Parson says that even with the big construction numbers, the Dallas – Fort Worth apartment market is one of the best in the country. He said, “Dallas – Fort Worth has certainly overshot our expectations on occupancy. D-FW occupancy is at a 12-year high, which is pretty remarkable.”
According to MPF Research, the top apartment building markets in Dallas – Fort Worth based on units under construction in the 3rd quarter are below.
Downtown-Uptown – 2,836 units
Oak Lawn – 2,523 units
Lewisville – 2,001 units
Los Colinas – Coppell 1,855 units
Allen – McKinney – 1,323 units
Frisco – Prosper – 1,229 units
Denton – 1,173 units
East Dallas – 1,171 units
Plano – 978 units
MPF Research expects rent increases to slow slightly in D-FW and vacancy rates to rise a bit in 2014 as more than 10,000 units become available.
“2014 looks like a slow-down year, but the numbers are still very good,” Parson said. “The new units will continue to do well but not at the pace they have now.” MPF Research vice president Greg Willett added more optimism. “We think it’s going to be a long cycle. Net demand across the U.S. really matches up with delivery of new apartments.”
Let’s hope the growth continues as in-migration into major Texas cities creates more opportunities for all of us!