Apartment investors captivated by DFW

​​DALLAS – According to Marcus & Millichap’s Dallas-Fort Worth multifamily market report​​ for first quarter 2018, an average of 85,000 individuals have moved into the metroplex in each of the past five years, creating strong demand for area housing. 

Despite
robust employment gains, wage growth has not kept pace with
home price appreciation, pushing thousands into
apartments. Absorption reached
the highest level in the last decade in 2017, despite peak unit completions. This suggests there’s still pent-up
demand for metroplex housing.

The report says that 29,000 units were completed year over year in the area. While net absorptions totaled over 22,000 units last year — a decade high — vacancy increased 60 basis points to 5.6 percent. 

Rent growth slowed last year to a still-strong 4 percent, pushing the average asking rent to $1,091 per month. 

For 2018, Marcus & Millichap predicts that completions will rise again to 32,000 units, remaining well above the five-year average. Developers are posed to deliver a record number of units.

Vacancy is expected to increase to 6.3 percent, up 70 basis points. Effective rents should grow 3.4 percent, once again below the previous five-year average. The average asking rent in 2018 is predicted to be $1,128 per month.