Dallas rent evolution, click to enlarge
Fueled by one of the country’s best-performing economies and rapid population growth, the Dallas–Fort Worth multifamily market has stayed in high gear. While many large coastal metros are reaching saturation, both development and investment in DFW remain relatively unfazed.
The metro added 91,700 jobs in 2017, and its demographic expansion was nearly three times the U.S. average. Continuing to be a business-friendly area and a magnet for talent and corporate relocations, North Texas is rapidly generating positions across employment sectors, pushing up housing demand. An ongoing labor shortage, deepened by an influx of residents in the wake of Hurricane Harvey, is impacting DFW’s construction sector, which added just 800 jobs in 2017. Although some projects faced delays, the area has no shortage of large-scale developments across all asset classes, with developers gearing up for a wave of new construction.
Roughly 16,800 units came online across the metro in 2017. In 2018, around 22,000 new apartments are expected to come online for a new cycle high. Meanwhile, investors remain bullish, with $5.4 billion in multifamily assets trading in 2017. Although Dallas is expected to lead the nation this year in deliveries, the metro’s rapid expansion is bound to keep multifamily demand steady, leading to projected rent growth of 4.4 percent in 2018.