During a recent Connect Multifamily event in Dallas, a panel of experienced professionals discussed their evaluation of the current market conditions.
George Maravilla from Tower Capital shared his belief that there is an oversupply in the Sunbelt region. However, he also believes that this is only temporary and points to a decrease in construction starts as a positive sign for the future.
Bryan McNally from Legacy Partners echoed this sentiment, stating that while things may be slow now, they are expected to improve by 2025 due to population and job growth as well as fewer buildings being built.
Jason Haun from ZOM Living noted one particular niche within the market that seems to be performing better than others – workforce housing. He mentioned suburban towns with large employers such as Sherman with TI and El Paso with Samsung as potential opportunities for development. By keeping rents affordable through omitting high-end amenities, these areas have shown success.
Jay Parsons from Madera Residential pointed out that although there has been some slowdown in activity, Dallas and Houston remain two of the fastest-growing areas for renters aged 20-34. As long as buying remains more expensive than renting in DFW area cities like San Marcos will continue to present strong opportunities for multifamily development compared to other metro areas across the country.
