Dallas-Fort Worth 1Q23 Multifamily Market Insights: Investors continue to acquire Class B and Class C properties
Highlights:
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- Continued gains in the local labor market are supporting the outlook for the Dallas-Fort Worth multifamily market. Developers are active, bringing new projects through the pipeline to meet current and future renter demand for housing.
- Vacancy trended higher in the first quarter, reaching 6.4%. Vacancy rates are nearly identical across all property classes.
- Rents have increased 6.8% in the past 12 months, ending the first quarter at $1,531 per month. Some of the fastest rent growth has occurred in Class A properties, and this has supported new development.
- Transaction activity in the first quarter lagged 2022 levels but still led the way at the national level. Investors targeted Class B and Class C properties at the start of the year, and cap rates averaged 4.9%.
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