Dallas had one of the most competitive rental markets in Texas during peak renting season this year, according to a recent report.
The report was published by the apartment search website RentCafe.
Overall, Dallas received a rental competitivity score of 52, the fourth-highest score in Texas. The state’s top three most competitive rental markets were El Paso with a score of 90, McAllen with a score of 74, and the Midland-Odessa area with a score of 71.
Despite the fierce competition in Dallas, securing a rental was slightly easier in 2023 than during peak rental season last year. The average number of prospective renters competing for an apartment in Dallas from April through June 2023 was nine. The average was 15 the year prior.
Furthermore, the average number of days an apartment spent on the market was 37, a 19% increase over 2022’s peak rental season.
Noting that more than half of the 139 U.S. markets it analyzed had cooled since last year, RentCafe based its rankings on five relevant metrics:
- Apartment occupancy rate
- Average total days vacant
- Prospective renters per vacant unit
- Renewal lease rate
- Share of new apartments built during the same timeframe
“In particular, the most common signs of softening year-over-year are the uptick in the number of days that apartments stayed vacant and the decrease in the number of renters vying for one available unit,” the report reads.
To determine a rental market’s competitivity score, RentCafe assigned a percentage weight for each metric: 30% for apartment occupancy rate, 15% for average vacant days, 15% for prospective renters per vacant unit, 30% for renewal lease rate, and 10% for share of new apartments.
Other Dallas-based metrics that came in lower this year compared to 2022 were the number of occupied apartments, the share of renters renewing their leases, and the share of recently built apartments.
The occupancy rate in Dallas during the peak 2023 season was 93.1%, a drop from the 94.9% clocked the year prior. The year-over-year change in Dallas’ lease renewal rate was 59.2% in 2023 and 62.6% in 2022. Meanwhile, the share of new apartments was 0.21% in 2023 and 0.72% the previous year.
Competition for apartments intensified on a national level, particularly in the Midwest. Despite strong competition in the Midwest region, Miami came in first place, becoming the most competitive U.S. rental market in 2023.
To view the full report, click here.