Development Powers Through in Dallas
- Aug 31, 2018
Boosted by a diverse economy, Dallas-Fort Worth remains one of the most dynamic multifamily markets in the U.S. Although its population is growing three times faster than the national rate, thus strongly fueling demand, North Texas is still relatively affordable, especially when compared to coastal metros of similar size, such as New York City and Los Angeles.
Dallas-Fort Worth added nearly 120,000 jobs year-over-year through April for a 2.9 percent expansion, outperforming the national average by 120 basis points. The metro’s strong economy is generating positions across the board, boosting demand for both working-class and upscale housing. Professional and business services led growth, having generated 25,900 new jobs, as corporate expansions and relocations continued in the area at a rapid pace.
Roughly 11,500 multifamily units came online in Dallas-Fort Worth in the first half of 2018 and an additional 43,000 units were under construction as of June, with the metro boasting the largest pipeline in the U.S. Due to intense development, the occupancy rate in stabilized properties dropped 130 basis points year-over-year, to 94.4 percent as of April. Even so, the strong demand for workforce housing and rapid demographic expansion are bound to keep rent growth healthy. We expect rents to advance 3.1 percent in 2018.