Key Highlights:
- Although net migration moderated during the past year, Dallas remains one of the top markets for the inflow of new residents. Several factors continued to attract people to the region, including a relatively low cost of living compared to Gateway markets, a wide range of employment opportunities, a favorable tax environment, and a high quality of life.
- However, market conditions eased in recent years in response to a surge of new supply, which outpaced new tenant demand and is likely to take time to absorb.
- The average quarterly transaction volume from 2023 to mid-2024 decreased by 19% compared with the average from 2015 through 2019, a smaller change than the 28% decline nationally.
- Beyond the immediate wave of supply, operating conditions should strengthen considerably in the coming years. New supply is expected to moderate after peaking in 2025, and apartment demand should remain supported by strong demographic fundamentals.
Fill out the form to access the full report:
Additional Insights:
The Dallas apartment market will continue to contend with high supply. There are more than 20,000 units projected to come online in the next six to 12 months, according to Yardi Matrix, on par with the level of completions during the past 18 months. However, operating metrics should vary by submarket, as new supply is patchy throughout the market. Beyond the immediate term, operating conditions in the Dallas apartment market should strengthen considerably. Apartment demand should remain robust because of continued in-migration of people and companies.
Elevated Demand and Slowing Deliveries Set Stage for Future Growth, one of Lument’s two Q3 2024 market spotlights, was developed in partnership with Rosen Consulting Group, and gives an in-depth look at the Dallas, Texas market.
