Multifamily Dallas Report – Winter 2019

An accelerating pipeline that brought nearly 75,000 units online since the beginning of 2015 slowly dampened rent growth to 2.1 percent year-over-year as of November 2018.
Dallas rent evolution, click to enlarge
Dallas rent evolution, click to enlarge

Boosted by North Texas’ very rapid economic and demographic expansion, Dallas-Fort Worth remained a stable multifamily market in 2018 and continues to be a relatively safe investment bet. Nonetheless, an accelerating pipeline that brought online nearly 75,000 apartments since the beginning of 2015 slowly but steadily dampened rent growth to 2.1 percent year-over-year as of November 2018.

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The metro added 109,400 jobs in the 12 months ending in September. This marks a 3.2 percent rate of growth, 120 basis points above the U.S. figure, as Dallas continues to be a strong regional magnet for both large companies and highly skilled workers, especially when comparing its living and business costs to the ones of large coastal hubs.

Dallas sales volume, click to enlarge
Dallas sales volume, click to enlarge

The DFW building boom is not showing signs of slowing down, with 42,500 apartments underway as of November, a large share of them located across core and Far North Dallas submarkets. As rent growth decelerated, investment volume shifted down a gear in 2018, but the average per-unit price remained flat over 2017, at a little above $100,000. Multifamily supply and demand are largely balancing each other out, and considering the metro’s delivery rate and rapidly expanding economy, rent growth is bound to remain tepid but steady in the foreseeable future.

Read the full Yardi Matrix report.