In its second quarter report for the Dallas-Fort Worth multifamily market, Marcus & Millichap highlights the area’s robust fundamentals and strong demand. According to Mark R. McCoy of Marcus & Millichap, Dallas-Fort Worth continues to see impressive growth in both demand and new construction.
Some key findings from the report include:
– In Q1 2024, Dallas had the highest apartment demand in the nation with over 8,000 units absorbed.
– Submarkets such as Frisco-Prosper and Allen-McKinney were significant contributors to this trend.
– Fort Worth experienced supply pressure with a 4.4% increase in apartment inventory leading to more frequent rental concessions.
– Areas like Intown Fort Worth and North Fort Worth-Keller saw a notable increase in rental concessions due to this supply influx.
– Despite an historic surge in supply causing vacancy rates across DFW metroplex to rise (currently at 7.9%, highest since 2010), average effective rents are projected to reach $1,548 per month.
Overall, it is clear that DFW’s multifamily sector is thriving despite some challenges posed by increased supply.
