|Take 60,000 new households arriving in DFW, add in less construction than usual, and that equals a significant drop in apartment vacancy. That's good news for multifamily developers with projects in the pipeline. (And you thought you'd never use math in real life?)|
Including the completion of the 292-unit Gables Park 17 in Q1, developers delivered nearly 6,200 units in the market over the past 12 months, less than half of the 15,300 brought online in the preceding 12-month period, according to Marcus & Millichap. Limited construction financing led to an average issuance of 5,600 multifamily permits in each of the past two years, about a third of the long-term average. As a result, completions of multifamily rentals in DFW will sink to one of the lowest totals on record in 2011. Builders will complete 3,000 rentals this year, a considerable drop from the 7,300 that came online in 2010 and the average 8,900 completed annually over the past 10 years. In the planning pipeline: 29,000 units, or about 5% of existing stock.