Wednesday, April 04, 2012

D-FW apartment demand falls for first time since 2009

DMN files
There were 12,400 apartments under construction in North Texas in the first quarter.

The North Texas apartment boom hit a bump in the first quarter.
Net apartment leasing fell by 270 units in the first three months of 2012.
It was the first such decline in more than two years.
The drop in apartment demand came as sales of preowned homes in the area rose by about 20 percent.
"I don’t think one quarter of slight resident loss should be viewed as a big deal, especially when demand in first quarter usually is pretty mild anyway," said Greg Willett, vice president with apartment analyst MPF Research  "The job numbers still look good, and a comeback for the for-sale housing sector actually could drive them higher."
The first quarter decline in apartment rentals ends a long streak of strong demand for rental housing in the D-FW area.
Since the start of 2010, net apartment leasing in North Texas has added up to almost 40,000 units, according to Carrollton-based MPF Research.
And in the fourth quarter of 2011 alone, apartment occupancies in the D-FW were up by almost 3,000 rental units.
Willett said most of the first quarter declines in leasing occurred in the northern suburbs.