Dallas Multifamily Report – March 2023
While rental fundamentals dampened, the Metroplex remains healthy.
Dallas rent evolution, click to enlarge
Dallas-Fort Worth performed well during the pandemic and continues to display healthy fundamentals fueled by strong demographic growth, even as demand softened. Following last year’s 2.4 percent stock expansion, occupancy in stabilized properties declined 1.1 percent in 12 months, to 94.5 percent. Meanwhile, the average asking rent held up well, down by only 0.3 percent on a trailing three-month basis, on par with the national rate. At $1,556 in January, Dallas’ average rent was still behind the $1,701 U.S. figure.
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Dallas sales volume and number of properties sold, click to enlarge
DFW unemployment was down to 3.2 percent in December, trailing Austin (2.7 percent) but ahead of the state (3.8 percent), the U.S. (3.5 percent) and other major Texas metros, according to data from the Bureau of Labor Statistics. Employment expanded by 6.8 percent, or 242,200 positions, in the 12 months ending in November 2022. That placed the Metroplex first among the country’s major markets, while the national average hit 3.9 percent. Professional and business services led gains (51,700 jobs), followed by leisure and hospitality (47,900 jobs). Meanwhile, 61.6 million square feet of industrial space was underway in January, fueling the development boom.
Dallas. Photo by Wirestock/iStockphoto.com
As of January, developers had 50,482 units underway, heavily favoring the upscale Lifestyle segment. Meanwhile, transaction activity slowed down at the beginning of the year, on the heels of $10.1 billion in assets trading in 2022, which marked the second-best year in a decade.
