Dallas Multifamily Report – November 2023

In line with the national trend, the Metroplex cooled off in the second half of 2023.

Dallas rent evolution, click to enlarge

Dallas rent evolution, click to enlarge

With inflation continuing to impact the industry, Dallas-Fort Worth’s rent movement turned negative through the first three quarters of 2023, at -0.1 percent as of September. At $1,563, the DFW metro’s average rate was still lagging the $1,722 national figure. Meanwhile, the average occupancy rate in stabilized assets was down 10 basis points year-over-year as of August, to 93.7 percent.

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

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

Dallas-Fort Worth added 178,600 new jobs in the 12 months ending in June, up 4.7 percent year-over-year and 210 basis points above the U.S. figure. According to preliminary data from the Bureau of Labor Statistics, the metro’s jobless rate climbed to 4.2 percent in August, the highest rate since October 2021. Professional and business services gained 39,100 jobs year-to-date through June, leading all sectors.

Dallas. Photo by Ultima_Gaina/iStockphoto.com

Dallas. Photo by Ultima_Gaina/iStockphoto.com

After registering $9 billion in the first three quarters of 2022, Dallas-Fort Worth’s transaction volume fell significantly during the same time frame in 2023, to $2.5 billion across 110 deals. The Renter-by-Necessity segment accounted for 70 transactions, leading to a sliding per-unit price, at $152,902. Developers focused on upscale properties, with more than 94 percent of the properties under construction aimed at the Lifestyle segment.

Read the full Yardi Matrix report.

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