CARROLLTON, TX-A report just released by local research firm MPF Research notes the good news: multifamily rents in North Texas are continuing their upward trek. The other side of the coin, however, is that the pace has slowed – effective rates for new leases were up 2.8% during the past year, versus the 4.7% growth that took place in 2011.
Still, no one should panic at the slowdown. MPF Research, a division of RealPage Inc., points out that rents have jumped 8.5% in the past three years, following mild drops that occurred in 2008 and 2009. “The overall slowing in growth relative to 2011′s performance mainly came at the top end of the market, as the best properties had been posting price increases of 5% to 6%,” explains MPF Research vice president Greg Willett in a press release. “The leasing environment has gotten a bit more competitive in the top tier because new supply is starting to come on stream at more significant levels at the same time loss of renters to purchase, while still low by long-term historical standards, is beginning to increase a little.”
Other facts of note coming out of the report include:
- Average monthly rent at $853.
- Occupancy at 93.7%.
- Ongoing construction in the Dallas-Fort Worth area stood at 19,930 units at the end of 2012. Approximately 12,816 of those units are scheduled for completion in 2013.
The report says North Texas apartment performance statistics during the upcoming year will mimic those generated in 2012, with occupancy forecast to hold steady at its current level. Rents are anticipated to increase again by approximately 3%.