DALLAS – Marcus and Millichap has released its 2Q2023 multifamily market report. Among its findings:
Construction
Supply additions over the past year were relatively modest by Dallas-Fort Worth’s standards. The 2.4 percent inventory growth pace during that frame measured as the smallest over an equivalent span since 2015.
The slowdown in deliveries was linked to delays and supply chain deficiencies, resulting in prolonged projects set to finalize in the coming quarters.
Vacancy
Metroplex vacancy rose by at least 60 basis points in every quarter during
the past year, resting at 6.5 percent in March 2023. The magnitude of this
movement is partially due to how tight availability was in early 2022.
Garland and Richardson posted some of the least extreme vacancy hikes.
These suburbs are noting much less construction than surrounding areas.
Rent
After peaking in the third quarter of last year, the average effective rent in
Dallas-Fort Worth ticked down 0.6 percent from that point to $1,530 per
month in March 2023. Rising vacancy is marginally pressing on rates.
Southeast and Northwest Dallas had standout rent growth. Monthly rates
here remain below the market average, luring tenants looking to cut costs.