There’s no doubt that the multifamily industry is experiencing an upswing of extremely rapid growth. While some industry experts are concerned about oversupply, at a Dallas Builders Association meeting on the local apartment market, Cameron McIntosh from MPF Research reported that the multifamily market in DFW is in a very healthy and stable place.
Extreme growth of the market can be attributed to three things:
Increase in Demand
When it comes to apartments in Dallas, demand is not an issue, supply is. McIntosh explains that apartment demand in DFW is at an all-time high and has also increased across the different classifications of apartment products.
Strongest Real Estate Market in Texas
A one-bedroom unit has seen the most robust rent growth in the metroplex as a result of tenants no longer staying for the full term of their lease because they don’t have any incentive to. This pattern causes many tenants to constantly move around, which leads to higher occupancy rates. Uptown is currently at 96 percent occupancy because of its walkability and close proximity to popular restaurants and retail options. The Medical District, which accounts for 15 percent of incoming supply in the next few years, will have 13 communities constructed covering a span of two blocks.
Migration Patterns of Young Professionals
The strong and diversified local economy has led to strong jobs, which continues to drive apartment demand. Dallas will continue to see an influx of recent college graduates because of the large number of major companies looking to hire. The city also boasts strong recruiting efforts. Dallas-Fort Worth is the most logical choice in location to start a career for recent college graduates whose first-year earnings is substantially higher than the national average of $45,478.
Experts at a previous Bisnow meeting discussed the multifamily boom in Dallas and reported that we have 2-4 years left of exceptional demand and rent increases in Dallas with one expert predicting at least 7-8 more years. The city has seen such strong numbers when it comes to construction starts making it easy for developers to not hold back.
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