Dallas 2Q23 Multifamily Market Insights Report: With rents on an upswing, sales prices trend higher
Highlights:
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- Operating conditions improved in the Dallas-Fort Worth multifamily market in recent months. The pace of absorption regained momentum, supported by strong growth in the local labor market.
- Vacancy crept up 20 basis points during the second quarter, reaching 6.6%. Vacancy levels are higher than one year ago, but the bulk of the year-over-year increase occurred in the second half of 2022. The rate is forecast to level off in the second half of this year.
- After inching lower to start the year, rents rebounded in recent months. Average rents ended the second quarter at $1,546 per month, 3.8% higher than at the midpoint of 2022.
- While still considerably lower than recent peak levels, investment activity picked up at the end of the first half of 2023. Prices trended higher, particularly in sales involving Class A properties. Cap rates pushed up to 5% on average.
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