Dallas Multifamily Report – July 2023
North Texas has almost 60,000 apartments under construction.
In the first five months of 2023, Dallas-Fort Worth displayed solid, albeit slowing, fundamentals. After a decline that started in December 2022, rent growth plateaued on a trailing three-month basis through May, at $1,553, while the U.S. rate rose 0.3 percent. Meanwhile, the average occupancy rate in stabilized properties dropped 150 basis points year-over-year as of April, to 93.7 percent.
Dallas-Fort Worth added 203,100 jobs in the 12 months ending in March, up 5.5 percent year-over-year. As recently as April, the metro’s unemployment rate had dropped to 3.4 percent, its lowest rate since the beginning of 2023, according to preliminary data from the Bureau of Labor Statistics. The trade, transportation and utilities sector added 30,500 jobs, accounting for the most additions across the metro. This trend will likely continue, as Dallas Fort Worth International Airport, in partnership with American Airlines, will embark on a $4.8 billion capital improvement program.
Developers had 57,142 units under construction in May. Of the projects underway, 9,956 broke ground this year. In the first five months of 2023, the market had a transaction volume of $1.1 billion, as investment activity continues to remain very limited by the metro’s standards. Three-quarters of assets that traded hands were in the Renter-by-Necessity segment.