Apartment Market Turns in Strong Q2 Figures

DALLAS—The multifamily market in the Dallas-Ft. Worth Metroplex continues to boom, thanks to a stronger than expected economy and higher interest rates that are preventing some renters from buying a home. According to Dallas-based M/PF Research, some 8,700 apartments were leased during the second quarter of this year—the highest amount for a 90-day period in 14 years.

At the same time, the overall D/FW area apartment occupancy was 94.2% in June, virtually unchanged from a year ago. Rents have risen slightly, by more than 3%, compared to a year ago. The average apartment rent was $660 per month in June, reports M/PF.

Over the past year, the area has seen 21,400 units rented, according to M/PF Research statistics. Apartment leasing was strongest in areas with the most new units, including West Plano, which was at the top of the list with 3,100 units rented. Downtown Dallas came in second with 2,000 apartments leased.

Contributing to the multifamily statistics were a number of factors, officials said, including growth totaling 100,000 jobs and rising mortgage rates. In addition, rental concessions continued to lure tenants to apartment complexes.

M/PF notes that some 18,000 apartments were under construction in the D/FW area during the second quarter of this year. That is a dramatic slowdown from the previous year, when 29,000 units were reported under construction.