While homes prices are up in North Texas, it seems the new year will likely also bring higher rents. Despite being ahead of most of the country in terms of apartment construction, rapid growth in North Texas appears likely to keep putting pressure on supply.
In 2020 alone, the Dallas-Fort Worth area added almost another 120,000 residents. That makes the region a leader in population growth. It doesn’t help either that rising single-family home prices are forcing some buyers to the rental market.
Some economists are already predicting rent prices in the Dallas-Fort Worth area will rise more than five-percent this year. The Marcus & Millichap investment forecast report suggests the average rent will be around $1,395 per month.
If it happens, it will mark the second-fastest growth in just six years. From 2020 to 2021 there was a sharp increase of 12-percent, but the firm isn’t expecting that much of an increase this year.
For the past several years, the Dallas-Fort Worth area has been the top US metro area for multi-family construction. It’s not even close to the second-largest rental pipeline, which is New York City. Even so, labor shortages and material shortages are pushing back some construction timelines.
Posted by Kenneth G. Cox on
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