Dallas Multifamily Report – November 2022
Although boosted by a relatively healthy economy, the rental market is nonetheless slowing down.
Dallas rent evolution, click to enlarge
Dallas-Fort Worth’s robust economy has kept its multifamily market running in high gear for most of 2022, with strong development and investment activities. However, inflation is impacting renters, and rate growth softened to a 0.2 percent increase on a trailing three-month basis through September, to $1,566. In addition, substantial stock expansion surpassed demand, and the occupancy rate in stabilized properties slid 40 basis points in the 12 months ending in August, to 95.2 percent.
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Dallas sales volume and number of properties sold, click to enlarge
DFW’s unemployment rate stood at 3.7 percent in August, on par with the national rate, according to preliminary data from the Bureau of Labor Statistics. This placed the metro above the state (4.1 percent) and behind Austin (3.0 percent). The job market expanded 7.5 percent, or 277,600 jobs, in the 12 months ending in July, well above the 4.5 percent national rate. Professional and business services—DFW’s main economic driver—led growth with 71,400 jobs. The sector is poised to continue growing, boosted by companies such as Wells Fargo, which announced a new 4,000-worker campus.
Development remained elevated, with 51,621 units under construction and 16,117 units delivered in 2022 through September. Construction starts increased from the same period last year. Meanwhile, investment volume surpassed $7.7 billion, although a softening was evident from one quarter to the next. The per-unit price continued to rise, up 16.5 percent annually, to $184,307.
