On May 19, real estate experts in the City of Dallas spoke to Fox 4 News about the rising price of rent. According to Fox 4, the metroplex has seen some of the highest increases in the country. It costs an average of $2,100 a month to rent a two-bedroom Dallas apartment.
The owner and CEO of Rogers Healy Companies, Rogers Healy, said that a shortage of supplies is a factor.
“It’s insane. The rental market here is crazy, if not crazier than the sales market. We saw supplies, whether it’s lumber, glass, etc., labor, everything is short. So because of that, people are having to charge more, which, again, that’s the new market,” Healy said.
The rent for one-bedroom apartments in Dallas rose 20% over the past year, and other metroplex cities saw similar increases. The cost of rent for a one-bedroom apartment in Grand Prairie increased by 55%, and in Grapevine, it rose by 44%.
Ken Nolan of the Dallas County Appraisal District commented, “The apartment market in DFW, we’ve had the highest rent increases of anywhere in the country in the last year in DFW as a whole.”
The district stated more supplies are being brought into Dallas for the construction of new apartments.
Nolan told Fox 4, “There’s more apartments under construction in the DFW area right now than anywhere else in the country.”
Healy stated that a rise in developer costs has also driven up rent in Dallas and other North Texas cities.
“The costs have gone up significantly for developers. Land acquisition is probably 35-40% higher than it was a year and a half ago,” he said. “The supplies are probably 50-60% more expensive than they were even a year ago, and then the labor. A historic shortage in labor means they have to make their money up somewhere.”
According to Fox 4, rent prices are not likely to go down soon.
“It’s a really tough time to be a renter,” Healy said. “It’s a really tough time to be a realtor. I think it’s just a very classic case of economics 101 with supply and demand where thankfully the demand is substantially higher than the supply.”