A Look at How Crazy the DFW Apartment Market Has Become

Posted by Kenneth G. Cox on Wednesday, June 29th, 2016 at 6:44pm

Dallas-Fort Worth Apartments

So just how insane is the apartment market in DFW right now? Well, according to a recent article in the Dallas Business Journal, over 50,000 new units are currently underway in our region, which is not only an all-time high, but easily the most units under construction of any major market in the U.S. by far.

With so many apartment units under construction in DFW, economists and real estate professionals alike are wondering whether demand really is that high or if North Texas could see over saturation sometime in the near future. As of now, however, it’s hard to argue that demand really is keeping pace with the incredible new supply of apartment residences continuing to hit the market, which will no doubt continue through the rest of the year.

As noted by The Dallas Business Journal, DFW usually absorbs between 15,000 to 20,00 apartments every year, but over the next 12+ months, that number will balloon to almost 30,000 units thanks to all the new development that’s either just finishing or expect to wrap up sometime in the near-future.

Right now, the North Texas rental market has an occupancy rate of 95.5%, which certainly leaves plenty of room for continued growth. New jobs are moving to DFW seemingly faster than ever, and in many ways, developers just can’t build units fast enough.

Unfortunately, with such a strong demand, median rent prices also continue to rise, with some believing we’ll likely see another 4% jump or so by the end of 2016. Year-over-year, rental rates in DFW are growing by just over 6%, which should continue at least into 2017, if not beyond.

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