Market Fundamentals Oscillate
Multifamily fundamentals in Dallas-Fort Worth were up and down, in line with national trends, as reported in the U.S. multifamily market outlook. The main challenge for the rental sector stems from the record deliveries expected this year. Rent movement has been negative for five straight months, down 0.5% on a trailing three-month basis in January, to $1,523. Occupancy also declined, down 0.7% year-over-year in January, to 93.1%, notes the latest Yardi Matrix Dallas multifamily market report.
The Dallas job market posted the best performance among Yardi Matrix’s top 30 metros, up 4.1% in the 12 months ending in November, and well ahead of the 2.2% national rate. All sectors gained jobs, for a combined total of 140,300 positions. Professional and business services led job growth, adding 32,400 positions, followed by financial activities (17,000 jobs) and mining, logging and construction (16,000 jobs). Meanwhile, unemployment dropped to 3.3% in December, according to the Bureau of Labor Statistics, outperforming the U.S. (3.7%) and the state of Texas (4.0%).
Developers had 67,892 units under construction as of January, with 485 units delivered during the month. However, deliveries will intensify in the coming months, as a record volume of completions is expected this year. Meanwhile, transaction activity remained tepid, with just $71 million in assets trading in the first month of the year, for a price per unit that fell to $135,814, well below the $201,010 U.S. average.
Read the full Yardi Matrix Dallas Multifamily Market Report: March 2024
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