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Friday, January 15, 2016
Axiometrics: DFW's apartment market one of the top in the U.S.
Dallas-Fort Worth's apartment market was one of the top regions in the U.S. based on rising annual effective rent growth in 2015, a year that had the highest annual growth in a decade.
The first three quarters of 2015 proved the most robust since 2005 before the Great Recession, said Jay Denton, senior vice president of analytics for Addison-based Axiometrics, which tracks and analyzes the apartment market.
The moderation into the last quarter of the year was caused by several Western region submarkets experiencing double-digit rate growth in the beginning of the year, but then were unable to sustain that rate.
"Those markets remain quite strong at 6 percent and higher rent growth," Denton said. "Axiometrics forecasted those metros to moderate, and they did late in the year. As expected, they remained among the top markets for rent growth despite the deceleration late in the year."
Nationally, the occupancy rate was 95 percent at the end of the fourth quarter, which is the highest fourth quarter occupancy rate since the end of 2000. The average rental rate in the United States is $1,244 a month, which rose an average of 4.7 percent.
Portland topped the list of rental growth markets with a 12 percent year-over-year growth in apartment rental rates. Oakland and Sacramento rounded out the top three markets in the United States, with 11.3 and 9.3, respectively.
Fort Worth's metro market ranked No. 13 with a rental growth of 6.9 percent year-over-year, while Dallas' metro ranked No. 22 with an annual rental growth of 5.9 percent by year end, according to Axiometrics data.
Carrollton-based MPF Research also released its year-end findings on Monday, with similar results.
Labor shortages are having a significant impact on new apartment building completions, said Greg Willett, chief economist for RealPage, the parent company of MPF Research.