Dallas Multifamily Report – Summer 2019
- Sep 19, 2019
Dallas’ economic engines remain in high gear, keeping employment growth among the strongest in the country. This continues to boost the metro’s multifamily market, which is expanding unfazed, with robust development and sustained investment reflecting North Texas’ healthy fundamentals. Despite last year’s supply surge, rent growth has started to pick up steam once more, with the average rate up 3.0 percent year-over-year through July.
The metro added 120,000 jobs in the 12 months ending in June for a 3.0 percent expansion, 130 basis points above the U.S. figure. DFW remains a regional powerhouse and a strong magnet for both companies and skilled workers, even more so when comparing its living and business costs to those of large coastal hubs or nearby Austin.
More than $2.5 billion in multifamily assets traded in DFW this year through July. Meanwhile, the metro’s construction surge shows few signs of softening, with 44,249 units underway as of July, coming on the heels of last year’s 27,588-unit cycle high. Demand remains healthy in spite of intense development, and the metro’s occupancy rate in stabilized properties dropped just 20 basis points over 12 months, reaching 94.4% in June. With the metro continuing to add residents at a rapid pace, we expect the average Dallas-Fort Worth rent to appreciate 3.3 percent in 2019.