Investor Competition Propels Property Values
Dallas-Fort Worth’s multifamily market continued its upward trajectory, bolstered by a robust economy that continued to attract companies from higher-cost markets. This went hand in hand with accelerating in-migration, which increased rental demand. Rates continued to grow, up by 1.8% on a trailing three-month basis through September, to $1,388. Bucking decade-long trends, the Lifestyle segment led both rent gains and occupancy.
Unemployment improved to 4.7% in August, outperforming the 5.9% Texas rate and the 5.2% U.S. figure. The employment market posted the third consecutive month of year-over-year growth, adding 211,100 jobs in the 12 months ending in July, for a 3.5% expansion, 100 basis points above the U.S. rate. Leisure and hospitality led gains, up by 66,900 jobs, or 21.3%. Despite the relatively robust overall economy, growth began moderating due to supply chain disruptions and staffing shortages, aggravated by the summer resurgence of COVID-19.
High material costs and labor shortages softened deliveries, with developers bringing online just 14,509 units in 2021 through September. However, nearly 50,000 units were under construction a the end of the third quarter, the country’s largest pipeline by far. Meanwhile, transactions hit an all-time high, with volume reaching $7.8 billion based on a price per unit that rose to $156,675.
Read the full Matrix Multifamily Dallas Report-Fall 2021