Dallas-Fort Worth Q3 Multifamily Market Report: Absorption Strengthens as Conditions Return to Normal
Highlights:
- The Dallas-Fort Worth multifamily market posted strong performance during the third quarter. Absorption totaled nearly 10,000 units in the past three months alone, driving the local vacancy rate lower. The market should gain additional traction as the pace of economic growth accelerates.
- Vacancy in the Dallas-Fort Worth area tightened during the third quarter, falling 40 basis points to 5.3 percent.
- Asking rents ticked up to $1,186 per month, matching the figure from the first quarter. Rent growth is expected to strengthen as the local economy stabilizes.
- After slowing during the second quarter, sales velocity nearly tripled in the third quarter. In transactions where sales information is available, per-unit prices have risen approximately 10 percent in 2020, while cap rates have averaged 5 percent.
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