'Vulnerable stage' as DFW reaches 50,000 apartments underway'Vulnerable stage' as DFW reaches 50,000 apartments underwayhttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=138052016-07-11T05:00:00Z2016-07-11T20:00:00Z

DFW - Dallas-Fort Worth has reached an all-time high for apartment construction with more than 50,000 units underway, which is the most product under construction in the United States by a large margin.

North Texas' new high mark for apartment construction comes at a time when Greg Willett, the chief economist for RealPage Inc. and other MPF Research analysts say the outlook for the apartment industry is favorable, but the amount of construction has the region reaching yet another stage. 

That's the vulnerable stage.

Currently, the demand for apartments in Dallas-Fort Worth is keeping pace with the supply being delivered by developers, he said. 

Annually, the region absorbs 15,000 to 20,000 apartments. This year, developers are on track to deliver nearly 30,000 apartments in the next 12 months.

North Texas apartment occupancy sits at 95.5 percent by mid-2016, according to the latest report by Carrollton-based MPF Research, which is an affiliate of RealPage. 

The rental rates are also continuing to grow 6.1 percent year-over-year.

Willett said he expects rents to continue to grow this year by 4 percent per year, which is still stronger than the long-term average, he said. 

The monthly average rent for a new resident is $1,282.

In the region, the hot spots for apartment development continue to be in Uptown and Frisco, he said, but there's virtually activity throughout North Texas.
Dallas Business Journal
Dallas-Fort Worth-Arlington

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