Rent prices in North Texas have cooled dramatically compared to their peak price in 2022.
The Dallas-Fort Worth metro had an annual rental growth rate of 0.3% in the month of May, with the median rental price for an 881-square-foot apartment costing $1,496 per month, according to the latest data from ApartmentData.com.
Although rent prices in DFW have cooled off from their peak last year, they still remain significantly higher than they were in May 2021, when rents began to surge higher across North Texas.
In May 2021, the median rent for a nearly 900-square-foot apartment was priced around the mid-1200s. Meanwhile, rents in DFW in July of 2022 were just over $1,500, data from ApartmentData.com shows.
Regarding the metro’s occupancy rate, DFW stands at 91.6%, which surpassed other major Texas metros but was down slightly from the top range of 93% when rent prices plateaued.
For comparison, Houston had an 89.9% occupancy rate and a 1.8% rental growth rate over the past 12 months; Austin had an 89.1% occupancy rate and a -2.7% rental growth rate; and San Antonio reported an 89.4% occupancy rate and a -0.3% rental growth rate.
Despite the myriad of challenges impacting the economy and the multifamily rental industry, market fundamentals in DFW remain relatively strong, according to John Griggs, cofounder and co-CEO of multifamily developer Presidium, which is based in Dallas.
However, Griggs suggests that current interest rates, stubbornly high inflation, recent banking failures, and persistent recession fears are beginning to make things much less favorable.
“Occupancy is healthy,” and “Rent growth is not parabolic like it was a year ago,” Griggs said, per reporting from The Dallas Business Journal. Still, there is no question that we’ve entered this new phase where it’s simply harder to get transactions done, he explained. Right now, things are “still fine,” he added.
ApartmentData.com’s full breakdown of the DFW metroplex can be viewed here.
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