New apartment deliveries in Dallas will jump this year from 5,800 units to more than 10,000 units with almost as many new units delivered in the first six months of 2013 as all of 2012, says Axiometrics VP of research Jay Denton (here with the Axiometrics team). New deliveries are typically priced in the Class-A range, which means more competition at the top leading to slower rental growth rates and little-to-no-concessions for lease-up properties, he says. On top of the new deliveries, more than 5,000 units have already started for a 2014 delivery and beyond.
Annual effective rent growth has been stable for Dallas, averaging 4.2% since July, Jay says. Since February, annual effective rent growth was 3.1% for Class-A, 4.6% for Class-B, and 5.3% for Class-C. (Pictured is the Class-C Antigua Village at 5320 E Rosedale St in Fort Worth.) The pace of annual rent increases for Class-A properties has been slowing gradually since hitting a peak of 10.1% growth in July 2011. Class-C properties in Dallas have improved their occupancy rates from 85.8% in February 2010 to 92.9% this February. Residents who think they have felt a squeeze because of rent increases should look at other markets, Jay says. Over the last three years, Class-A properties in Dallas increased rents $177 per unit, or about 18%. Over the same period, Class-A properties in San Francisco increased rents $646 per unit, or about 28%.
Stargazer lilies are our fave blooms, but we think carnations may smell the best. Do you have a favorite flower? tonie@bisnow.com
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