North Texas Maintains Strong Position
Dallas’ multifamily market is in a strong position, despite the broader economic challenges of the past year. Rents averaged $1,255, up 0.6% on a trailing three-month (T3) basis through May, matching the national rate of growth. Lifestyle figures increased by 0.7% to $1,456, outpacing the 0.5% rate in working-class Renter-by-Necessity units. Rents are expected to continue expanding, given the metro’s swift population growth and low rates compared to the U.S. average.
While the Dallas-Fort Worth economy has faced challenges over the past year, the market has shown itself to be resilient. Despite shedding nearly 100,000 jobs during the 12 months ending in March, the metro’s unemployment rate dropped to 5.7% in April, far less than the peak of 12.5% from one year earlier. In past years, the economy has benefited greatly from corporate relocations—particularly from gateway markets—and this has kept up over the past year, with both CBRE and Charles Schwab shifting operations to the area.
Multifamily investment shot up to $3.2 billion in the first five months of 2021, far beyond the $1.8 billion transacted during the same period in 2020. Development, too, is at a high point, with nearly 49,000 units under construction as of May, the largest pipeline in the U.S.
Read the full Matrix Multifamily Dallas Report-Summer 2021