WORST TO FIRST

Over the past year, Dallas went from one of the worst rent growth markets to one of the best in multifamily and could come close to doubling its previous peak for annual growth by year-end, with 6,611 multifamily units permitted over the past year (the second most in the country). Yeah, we're awesome. Illustrating that explosive growth are Axiometrics VP Jay Denton and prez Ron Johnsey. The firm tracks multifamily projects on a monthly basis with a monstrous database allowing clients to quickly pick up on trends (so no waiting for Perez Hilton to give 'em the low down). Ron tells us annual effective rent growth improved from negative 2.57% in June 2010 to 8.3% in July 2011. Dallas not only blew past Axiometrics' original forecast this year, but it also beat its previous peak for rent growth of 5.3% in Q3 ?06. The good news: Dallas has the best annual job growth rate  of all major US markets at 2.4%.
Ron says it was like a light switched on in January 2010 (two extra points if you find the light switch above) when the US apartment market started recovering. ?We saw increases accelerating in occupancy and rent growth, which is usually indicative of a very strong market,? Ron says. The problem: Amid anemic job growth, renters grew to a tune of one million new  households from Q1 '10 to Q1 '11. Couple that with a very limited supply, renters moving into smaller places, fewer move-outs to home ownership, and people staying put because of the uncertain economy. Rent growth is projected to average 4.4% per year between now and 2015. That indicates some pretty good job security for Ron, who has many mouths to feed: six dogs and two cats. Jay also likes feeding: we're told he's a backyard BBQ king.

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