Supply Wave Hits Occupancy
Dallas-Fort Worth’s multifamily market stood on steady ground in the middle of the second quarter, notes the latest Yardi Matrix Dallas multifamily market report. Advertised asking rents picked up after nine months of flat or negative performance, improving 0.2% on a trailing three-month basis through May, to $1,540, while the U.S. average rose 0.3%, to $1,733, as reported in the national multifamily market outlook. Yet the high volume of units slated for delivery in 2024 will likely curb further growth and will also impact occupancy, which is already below 93.0% as of April.
In the 12 months ending in March, DFW employment posted a 2.0% expansion, gaining 65,800 net jobs and outperforming the 1.4% national rate. Meanwhile, the unemployment rate clocked in at 3.4% in April, faring better than the U.S. (3.9%) and the state (4.0%), according to the Bureau of Labor Statistics. Not all sectors expanded, with professional and business services and information losing 5,100 jobs combined in the 12 months ending in March. However, as of April, the metro had 4.9 million square feet of office space under construction. Government and education and health services led job gains, accounting for half of the positions added during the period.
Developers delivered 7,947 units in 2024 through May, all in upscale projects. The under-construction pipeline totaled 63,975 units, with record supply forecast for the year. Meanwhile, transactions remained tepid, amounting to just $586 million, with the average per-unit price down 19.6% year-to-date, to $123,965.
Read the full Yardi Matrix Dallas Multifamily Market Report: July 2024
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