Wednesday, October 05, 2016
DALLAS—Dallas and Fort Worth apartment markets continued a trend of moderation in August, with annual effective rent growth down and average rents almost the same as July, according to Axiometrics, apartment and student housing market research number cruncher. Moreover, annual effective rent growth for the Dallas metro dipped below 5% for the first time since October 2014, suggesting the impressive rent growth figures may be starting to moderate.
“Though job growth in Dallas is extremely strong, the rate is lower than it was a year ago,” said Jay Denton, senior vice president of analytics for Axiometrics. “With the number of new units coming to market, absorption is more difficult with demand reduced, even slightly. So, property owners, especially in urban-core areas, are hesitant to raise rents too much.”
DFW employers added almost 110,000 jobs in the 12 months ending in July. Meanwhile, 17,069 new units have been identified for 2016 delivery and 23,255 for 2017 completion in Dallas, with 2,045 coming to the Fort Worth market this year and 4,165 next year. Construction labor shortages are causing several properties scheduled for 2016 completion to be delayed into 2017.
Effective rent in the Dallas metro was 4.7% in August 2016, while rent growth was 5.5% in Fort Worth. Specifically, Dallas/Plano/Irving’s average rent was $1,134 and occupancy rates were 95.6% in both Dallas and Fort Worth. Fort Worth/Arlington’s August average rent was $1,021, an annual effective rent growth of 5.5%.
Written by Lisa Brown - Globest