Like so many other necessities of life, the cost of rent in Dallas-Fort Worth continues to rise, even as more and more apartment homes are constructed.
According to rent.com, the average rent price last year for a one-bedroom in Dallas was $1,691, and the average for a two-bedroom was $2,414. Nationally, $1,683 was the average for a one-bedroom, and $1,977 was the median for a two-bedroom.
Dallas experienced the tenth-largest rent increase year-over-year for the cost of a two-bedroom apartment, jumping 31.2%. Jacksonville, Florida, topped the list with a 44.8% increase.
CBRE, a global commercial real estate service company, reports that a strong economy is boosting the formation of new households, thus increasing rental demands. The report predicts that multifamily occupancy levels will persist above 95% for the future, and effective net rents will see a nearly 7% growth in 2022.
Multifamily housing constructions were the focus of 2021, with investors spending close to $28 million on apartment residences.
In 2021, Dallas ranked third in the U.S. for new apartment developments, with an estimated 15,300 new units becoming available. New York and Houston occupied the first two spots.
Fort Worth ranked 17th, with 6,200 new apartment units opening in 2021. The city was positioned between Chicago in 16th place and San Antonio in 18th.
Even with the increase in costs, more people continue to rent throughout the United States. While an average of 95-96% occupancy is considered “full” in the real estate industry, occupancy rates hit a record of 97.5% in December 2021.
Deputy Chief economist for RealPage, Jay Parsons, said, “I don’t think most people realize just how crazy that is. Not only is that a record, typically we consider 95 to 96% to be essentially full.”
The site also credits more people renting due to the increased rates in the home buying market. The Dallas Express reported that sales prices for homes jumped by a record 25% in just one year in 2021.
