Dallas-Fort Worth’s robust economy is generating new households, creating the tightest apartment conditions in over a decade and facilitating healthy rent growth.
According to Marcus & Millichap's Apartment Research Market Report for third quarter 2012, employment gains in the Metroplex will approach 3 percent this year, more than the national rate of 1.7 percent.
"With business booming, job seekers will flock to the area from some late-recovery markets in the Midwest and the West Coast," notes the report. "As a result, leverage in lease negotiations will remain firmly on the side of apartment operators through the end of the year, spurring strong revenue gains.
"Some headwinds are forming, however. Year over year, home sales are up 20 percent, an indication that more renters are transitioning into single-family homes. Foreclosure activity, meanwhile, is up more than 10 percent from second quarter 2011, mitigating attrition from apartments to the housing market. As foreclosure activity begins to abate and new construction accelerates next year, apartment operators may have to react quickly with concession offerings to maintain tight occupancies."
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