Dallas/Fort Worth
The Dallas–Fort Worth (DFW) MSA, is in the state of Texas encompassing 11 counties. The DFW MSA’s population was 7,573,136 according to the U.S. Census Bureau’s 2019 population estimates making it the most populous metropolitan area in both Texas and the Southern United States, the fourth-largest in the U.S., and the tenth-largest in the Americas. In 2016, DFW had the highest annual population growth in the United States.The metropolitan region’s economy is primarily based on banking, commerce, insurance, telecommunications, technology, energy, healthcare, medical research, transportation and logistics. As of 2020, DFW is home to 24 Fortune 500 companies, the third-largest concentration of Fortune 500 companies in the United States. DFW boasted a GDP of just over $620.6 billion in 2020.If the Metroplex were a sovereign state, it would have the twentieth largest economy in the world as of 2019. In 2020, DFW was recognized as the 36th best metropolitan area for STEM professionals in the U.S.Apartment demand is growing and the industry needs to keep up. However, producing enough new apartments to meet demand requires new development approaches, more incentives and fewer restrictions. DFW needs to build 19,000 new apartment homes each year to meet demand.
MULTIFAMILY 2021 OUTLOOK
EMPLOYMENT
The metro will recover all of the 81,800 positions lost in 2020 and regain growth momentum this year. Entering 2021, the markers unemployment rate of 6,5 percent was up 330 basis points annually, benefiting firms seeking available workers.
RENT
Despite vacancy continuing to rise, strong demand for rentals and new builds charging premium rates will support positive rent growth for the 12th consecutive year. The average effective rent will reach $1,192 per month in 2021.
OCCUPANCY
Overall apartment occupancy in DFW is at 95.4%, up more than a percentage point from second-quarter 2020.
Underlying trends strengthening out of the health crisis. The less-stringent shutdown in Texas, along with cost-of-living and quality-of-life considerations, could help accelerate already strong in-migration to Dallas/Fort Worth. From 2010 through last year the metroplex recorded a growth in population exceeding 20 percent, buoyed by the in-migration of almost 800,000 residents. Demand for apartments will also benefit from a widening affordability gap, with the median home price in the metro jumping by 11.4 percent last year to $306,300.Private investors seeking lower entry costs and higher first-year returns set their sights on urban Dallas neighborhoods. Suburban Class B and C apartments are also garnering more attention as underlying renter demand trends strengthen out of the health crisis.
- DFW apartments and their residents contribute $98.5B to the metro economy annually, supporting 428.9K jobs
- DFW comprises the highest concentration of colleges and universities in Texas
- Projected to have population growth by nearly 18 percent by 2029
- DFW is home to 24 Fortune 500 companies
- DFW ranked 4th best place to invest in Real Estate in 2021 by Mashvisor
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