Demographic Expansion Pushes Up Demand in Dallas
- Jan 02, 2018
Adding more than 90,000 jobs in one year and expanding its population at nearly three times the U.S. rate, Dallas-Fort Worth remains a regional economic anchor and a strong multifamily market. With the metro following the national deceleration trend, rents were up 2.6 percent in the 12 months ending in October.
Due to its relative affordability and business-friendly environment, Dallas continues to benefit from above-trend job creation led by corporate relocations and expansions. Financial activities and professional and business services generated 41,000 positions in the year ending in September, fueling upscale housing demand and strengthening the city’s already stable fundamentals. As the rapid economic expansion continues, Dallas-Fort Worth has no shortage of new large-scale projects: CyrusOne started construction on its $600 million data center campus in Allen, Rosewood Property Co.’s $1.5 billion master-planned community in Northlake is moving forward, and the $1.1 billion Texas Rangers ballpark in Arlington, which broke ground in September, is scheduled to open in 2020.
Investors remain bullish, as $5 billion in multifamily assets traded in DFW last year through October. Rental demand continues to be strong across the metro, which had more than 44,000 units underway, second only to New York City nationwide. The recent construction surge has come at a cost, as the occupancy rate dropped by 40 basis points in 12 months, to 95.4 percent as of September.