And developers are jumping on board, delivering the third biggest supply of new apartments in the U.S., according to data from Axiometrics, a Dallas-based analytics firm that tracks the nation's apartment housing market.
"If you include Fort Worth, we'd hop over Houston," Jay Denton, vice president of research for Axiometrics, told the Dallas Business Journal."This is one of the top markets for deliveries and we're seeing strong rent growth. We are developing 11,000 to 13,000 new units a year and barely satisfying demand."
Next year, developers are expected to add 11,724 new apartments, he added.
The Oak Lawn submarket has the most new apartments in the pipeline, with 4,954 scheduled for delivery into next year, he said. Apartments in the neighborhood have some of the highest rents in town, with an average monthly payment of $1,666.50.
That demand has caused the average effective rent to rise about $41 in June, year-over-year to an average effective rent of $982.10, according to Axiometrics research.
Right now, the Dallas area is on pace to see roughly 13,500 new apartments come to the market this year, Denton said. In certain submarkets such as Uptown, landlords and developers could see a lag of rent growth as the market is inundated with new supply, but it will keep up with the overall rise in effective rents in the metro area, he added.
The Dallas area submarkets seeing the greatest rental increases are in some surprising neighborhoods. That's because those neighborhoods aren't seeing the development boom Uptown and West Plano are seeing, Denton told me.
We take a look at the top 10 neighborhoods for apartment rental growth in the Dallas area.