- Following a very strong first half of the year, the Dallas-Fort Worth multifamily market gained additional momentum during the third quarter. Renter demand is being fueled by a rapid recovery in the local labor market. Investment demand has continued to accelerate in response to strengthening property fundamentals.
- The tightening vacancy rate is one of the clearest indicators of the rapid improvement in the local multifamily market. The rate ended the third quarter at 3.5 percent, down 180 basis points year over year.
- The pace of rent growth in Dallas-Fort Worth recorded a steep rise for the second consecutive quarter. During the third quarter, area rents spiked nearly 7 percent to $1,334 per month. Year over year, rents have increased 12.5 percent.
- The local investment market remained extremely active in the third quarter. The number of properties changing hands rose by more than 30 percent from the second quarter, and activity for the year has already surpassed levels for all of 2020. In transactions where pricing information was available, the median price in 2021 has reached $174,800 per unit, while cap rates have compressed to an average of 4 percent.