Friday, March 27, 2015
Dallas area job growth fuels escalating apartment rents
As Dallas-Fort Worth continue to add jobs to the region, apartment owners are expected to raise their rental prices by 5.4 percent, which outpaces the national average.
Apartment rents in the United States rose year-over-year by 5.1 percent for February, according to Addison-based Axiometrics, which analyzes the apartment market.
"Employment has been strong throughout Dallas-Fort Worth, with an almost 5 percent increase for jobs in Dallas," Stephanie McCleskey, vice president of research for Axiometrics, told the Dallas Business Journal."Nationally, that job growth is at 2.2 percent."
That job growth has fueled a strong demand for apartments that has brought a number of new development plans for apartments(especially in the urban core) to fruition. And property owners are reaping the benefits.
On average, Dallas had a 5.4 percent effective rent growth, which was above the national average, McCleskey said. In Uptown, prices rose 3.3. percent. In other submarkets of the region — such as Plano-Allen-McKinney (where you'd expect some Toyota folks to land) — there was a nearly 5 percent rise in rental growth, according to Axiometrics research.
"This really has to do with jobs," McCleskey said. "The employment numbers in Dallas is really strong and the single-family market isn't where it was before. There are also not as many people wanting to purchase homes because they can't do it, or prefer to rent for lifestyle reasons."
Candace Carlisle, Dallas Business Journal