Dallas-Fort Worth’s multifamily market continued its upward trajectory, bolstered by a robust economy that continued to attract companies from higher-cost markets. This went hand in hand with accelerating in-migration, which increased rental demand. Rates continued to grow, up by 1.8 percent on a trailing three-month basis through September, to $1,388. Bucking decade-long trends, the Lifestyle segment led both rent gains and occupancy.
Unemployment improved to 4.7 percent in August, outperforming the 5.9 percent Texas rate and the 5.2 percent U.S. figure. The employment market posted the third consecutive month of year-over-year growth, adding 211,100 jobs in the 12 months ending in July, for a 3.5 percent expansion, 100 basis points above the U.S. rate. Leisure and hospitality led gains, up by 66,900 jobs, or 21.3 percent. Despite the relatively robust overall economy, growth began moderating due to supply chain disruptions and staffing shortages, aggravated by the summer resurgence of COVID-19.
High material costs and labor shortages softened deliveries, with developers bringing online just 14,509 units in 2021 through September. However, nearly 50,000 units were under construction at the end of the third quarter, the country’s largest pipeline by far. Meanwhile, transactions hit an all-time high, with volume reaching $7.8 billion based on a price per unit that rose to $156,675.