Yardi Matrix: Dallas’ Dynamism
- Nov 23, 2016
Displaying solid fundamentals, the Dallas-Fort Worth metro continues to be one of the fastest-growing multifamily markets in the United States. Gaining more than 520,000 residents in the last four years and 110,000 jobs in the last 12 months alone, the dynamic metro is rapidly adding stock. At the same time, the market’s steady and above-trend rent growth is putting industry players at ease, projecting sustainable investments for the foreseeable future.
The area’s healthy business climate is drawing employers, with big corporations continuing to relocate or expand their DFW operations. Toyota, Facebook, AT&T, State Farm and Liberty Mutual are building major facilities and adding tens of thousands of jobs. Several massive mixed-use projects, including the $5 Billion Mile, Legacy West, CityLine and The Village at McKinney, are strengthening the metro’s live-work-play potential.
With more than 110,000 units in different stages of development and 21,369 forecast for completion in 2016, Dallas-Fort Worth is making efforts to keep up with demand. Unaffected by the drop in oil prices, the metro recorded $7.8 billion worth of multifamily sales since the beginning of 2015, with no recent signs of slowing down. With a projected rent growth of 7.3 percent for 2016 and a 95.9 percent occupancy rate as of August, the metro seems ready to absorb the overgrown pipeline.