Lower rent and more choice may accompany new apartment boom

March 6, 2018 by  

Experts predict price relief, more choices, and a wider range of available amenities in the Dallas-Fort Worth area as a byproduct of the boom in apartment construction.

According to the DFW CoStar Group senior market analyst David Kahn, 37,547 apartments, as of February 21, were in the process of construction across the region. In fact, data accumulated by Apartments.com, a subsidiary of the CoStar Group, has Dallas-Fort Worth coming in second among U.S. metro areas in the number of apartment units currently in the pipeline.

Apartment rents in the Dallas Fort Worth area have already experienced a reduced rate of growth. This shows that a downward pressure on rent, predicted by Kahn, is already present despite many units having not even broken ground. Rental rates went up in the years 2015 to 2017 by 6%, 4%, and 3% respectively.

The boom in apartment construction will no doubt be followed by an uptick in brochure printing, as both the new apartments as well as existing ones that have been renovated will vie for renters.

Since 2013, in excess of 100,000 jobs have been added to the economy of the region, and this has had a significant effect on the demand for more apartments. The number of apartment units in the pipeline accounts for approximately 5.5% of the number currently existing.