Home News Where did all the apartment renters go? Leasing drops in Dallas-Fort Worth

Where did all the apartment renters go? Leasing drops in Dallas-Fort Worth

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North Texas apartment renters hit the brakes in the most recent quarter.

Rental vacancies in Dallas-Fort Worth also increased, with net leases dropping by more than 5,000 units over the three-month period.

It’s the first time demand for apartments has fallen in more than five years, according to the report. Data from RealPage.

RealPage economist Jay Parsons said: “Demand is stagnant.

“Quarterly demand was negative across most of the country, including D-FW,” he said.

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Parsons said the summer months are usually a good time for apartment rentals, but not this year. Potential renters not proceeding with leases and other renters doubling down to save money may have contributed to the decline in demand for apartments.

“There’s a natural tendency to blame affordability, but it’s less clear,” Parsons said. “Rentee income and rent payments have both improved in recent months.” , softened demand for apartments across all price points.”

More than 63,000 apartments were built in North Texas in the third quarter.(Elias Valverde II/Staff Photographer)

Declining rentals, coupled with the addition of 5,871 new apartments to the market, pushed the region’s overall vacancy rate up to 5.4%. A year ago, just over 3% of D-FW’s apartments were vacant, according to RealPage.

“The biggest declines in occupancy rates in the third quarter were about two percentage points in Mesquite, Rockwall, Ellis County and East Fort Worth,” he said.

Parsons said rents in the area have yet to fall, but “the D-FW market, like the rest of the country, has seen a significant shift in momentum.”

At the end of September, North Texas average rents were a record $1,540, up 13.4% from the previous year. Parsons said he expects rent growth to moderate in the remaining months of 2022.

While demand for apartments has calmed down, construction is progressing well. A record 63,562 North Texas apartments were built at the end of the third quarter.

D-FW ranks first in Japan apartment construction Parsons said he expects leases to recover as so many people move to the area. North Texas’ population grew by nearly 100,000 last year. This is the highest number of any metropolitan area in the United States.

“The D-FW job market continues to be very strong, which is a big tailwind,” he said. “If employment and wages remain on track and inflation subsides to some extent, stagnant rental demand should unleash ahead of the spring 2023 leasing season.”

The decline in apartment rentals coincides with a decline in sales of D-FW homes.

Existing home sales were down about 13% in August and about 16% in July.

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