- The Dallas-Fort Worth multifamily market ended 2020 with significant levels of absorption and new supply. Vacancy ticked higher and rents remained within a tight range. The local labor market is regaining momentum, which should support renter demand going forward.
- The combined vacancy rate across Dallas-Fort Worth crept up 30 basis points in the fourth quarter, reaching 5.6 percent. Vacancy rose 50 basis points in 2020, offsetting a decline of 40 basis points in the preceding year. The Fort Worth-Arlington segment of the market recorded some modest tightening in 2020.
- After several years of steady gains, rent growth slowed in 2020 as owners shifted their focus to tenant retention. Despite turbulent market conditions, asking rents still rose 0.7 percent in 2020, ending the year at $1,183 per month.
- Investment activity surged to close the year, with sales velocity in the fourth quarter outpacing levels from the same period in 2019. In transactions where sales information is available, the median per-unit price rose approximately 15 percent in 2020, while cap rates have averaged 4.9 percent.