Home and apartment buildings are driving new construction in Dallas-Fort Worth, according to a new report, but the supply of rentals is not keeping up with demand.
“It’s a tough market for renters,” said Brian Carberry, senior managing editor of content marketing at Rentpath.com. “The demand is still pretty high and that is driving up prices.”
Dodge Data & Analytics found that construction has increased by 22% in Dallas Fort Worth this year compared to last year and some $10.6 billion worth of residential construction projects were launched.
“In some of these satellite or suburban cities in the Dallas Fort Worth metroplex area rental prices for two-bedroom apartments, which are the ones in highest demand, are increasing and places like Arlington are fueling the rise,” Carberry told Dallas Express. “But you also see certain areas like Plano and Frisco where prices are dropping and in Irving, rent is flat.”
Arlington being located outside of downtown Dallas and Fort Worth is one reason that Carberry believes rent in the the area is on the rise.
“People are wanting open space, more space and room to spread out,” Carberry said in an interview. “They’re looking for that in their location. If they are newer luxury apartments, they tend to have more amenities, which is among the things people are looking for but they come with a higher price tag so that can be driving up the overall average rent for an area.”
In fact, in desirable areas of Dallas and Fort Worth, new homes are being snatched up by residents.
For example, Dallas Business Journal reported that new homes were on the market for only 53 days on average and that occupancy in the Dallas Fort Worth metroplex is 92.5%.
“Dallas and Austin are the most expensive cities in Texas for rentals but they are also becoming more affordable whereas in Houston prices are decreasing,” Carberry said. “Houston is just cheaper as a whole so people see it as a more affordable option versus Dallas.”
According to Rentpath.com data, the average two-bedroom apartment in Dallas currently rents for nearly $2,300 a month compared to $1,780 in Austin and $1,600 in Houston.
“The overall cost of living in the Dallas area is actually becoming a little bit more affordable,” Carberry added. “The cost of living in Dallas dropped about 5% but it’s still more expensive than the national average, which means it’s still pricier to live in Dallas than in Waco, for instance.”