|DFW Apartment Investment Forecast 2016: Marcus/Millichap||DFW Apartment Investment Forecast 2016: Marcus/Millichap||https://www.recenter.tamu.edu/news/newstalk-texas/?Item=11825||2016-01-25T06:00:00Z|
DALLAS-FORT WORTH - Employment in the metroplex has pushed well above pre-recession levels and a consistent pace of growth is emerging, according to Marcus & Millichap’s U.S. 2016 Multifamily Investment Forecast.
Following the addition of 82,000 workers in 2015, companies will generate 78,000 positions this year, increasing payrolls 2.3 percent.
Builders will complete 23,000 apartments this year, expanding stock 3.2 percent. Last year, developers brought 22,000 units online.
Strong demand will keep vacancy at historical lows, despite increasing 20 basis points annually to 5.3 percent. A 30-basis-point fall was achieved in 2015.
Rent growth will slow from last year as thousands of new units hit the market and vacancy rises. In 2016, the average rent will rise 3.9 percent to $1,025 per month. Last year, average effective rent advanced 7.4 percent.
An interest rate hike this year will have negligible effect on cap rates, and initial yields will remain compressed, averaging near 7 percent.
|Marcus ＆ Millichap Real Estate Investment Services||Dallas-Fort Worth-Arlington||Multifamily|| http://www.marcusmillichap.com/research/researchreports/reports/2016/01/18/multifamily-investment-forecast|
Click to see the full Marcus & Millichap National Apartment Report 2016 (PDF).