Dallas Multifamily Report – March 2024

Record deliveries are expected this year, but rent growth has slowed.

Dallas rent evolution, click to enlarge
Dallas rent evolution, click to enlarge

In line with national trends, multifamily fundamentals remain mixed for the Dallas-Fort Worth metro. The main challenge for the rental sector stems from the record deliveries expected this year. Rent movement has been negative for five straight months, down 0.5 percent on a trailing three-month basis in January, to $1,523. Occupancy also declined, down 0.7 percent year-over-year in January, to 93.1 percent.

Dallas sales volume and number of properties sold, click to enlarge
Dallas sales volume and number of properties sold, click to enlarge

The Dallas job market posted the best performance among Yardi Matrix’s top 30 metros, up 4.1 percent in the 12 months ending in November, and well ahead of the 2.2 percent national rate. All sectors gained jobs, for a combined total of 140,300 positions. Professional and business services led job growth, adding 32,400 positions, followed by financial activities (17,000 jobs) and mining, logging and construction (16,000 jobs). Meanwhile, unemployment dropped to 3.3 percent in December, according to the Bureau of Labor Statistics, outperforming the U.S. (3.7 percent) and the state of Texas (4.0 percent).

Dallas. Photo by travelview/iStockphoto.com
Dallas. Photo by travelview/iStockphoto.com

Developers had 67,892 units under construction as of January, with 485 units delivered during the month. However, deliveries will intensify in the coming months, as a record volume of completions is expected this year. Meanwhile, transaction activity remained tepid, with just $71 million in assets trading in the first month of the year, for a price per unit that fell to $135,814, well below the $201,010 U.S. average.

Read the full Yardi Matrix report.

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