The Multi-Family Property Market in Dallas – Fort Worth
The rental market in the US has seen a rebound in 2011. This should come as no surprise given the state of the economy and the housing market, which are preventing people from buying and fueling the rental trend. In very few places is this more evident than in the Dallas-Fort Worth, Texas market.
For those who already own a rental property, this article will provide a detailed look at what is happening nationally and in the DFW area in order to provide a basis for comparison. And, for those individuals or businesses that may be considering an investment in a rental property, this article should provide some motivation to move on to that multi-family purchase while the obtain is good.
On a national scale
The overall US apartment market produced near-record levels of revenue growth in the second quarter of 2011. This was evidenced by an 8% occupancy increase, an increase in effective rents of 1.7 % and an increase in total revenue thatSource: “RealPage MPF™ Research Division Reports US Apartment Revenues Soared 2.5 Percent in Second Quarter “, realpage.com, June 29, 2011. reached 2.5%.
According to MPF Research Inc. Vice President Greg Willett, the last time revenue growth of this magnitude was seen was during the 2000-2001 tech boom. Homeowners can appreciate a number of factors that have contributed to this situation, including:
- A fairly stagnant unemployment rate
- Higher expenses and lower or consistent income
- Low consumer confidence that keeps home buying low and rental rates high
Dallas / Fort Worth
The DFW Metroplex topped the list of Top U.S. Apartment Markets, compiled by MPF Research Inc.While rental markets nationwide are on a general recessionary rebound, it appears DFW has even made a comeback. stronger than almost any other area in the country.
According to the study, DFW’s apartment rental market produced impressive results during the second quarter of 2011. There was an impressive increase in rental occupancy from a whopping 8,400 units, compared to the 6,350 units added in Chicago (# 2 on the MPF list). . New construction also continued to increase in an effort to keep up with growing demand. As a result, more than 7,300 additional apartments were under construction in the area during this time period, while a total of 784 properties were completed.
Here are some additional facts about the DFW apartment rental market as defined by MPF:
- 92% average occupancy
- $ 780 Median Monthly Rent
- 4-5% expected growth rate over the next year