average rent
average occupancy rate
ytd sales volume
YoY rent change
yoy occupancy change
ytd individual transactions
QUARTERLY DEMAND
YTD: 12,866
QUARTERLY COMPLETIONS
YTD: 21,291
Average Monthly Mortgage Payment
Average Monthly Rent
Occupancy rates in the Dallas/Fort Worth market observed a modest downturn in the 3rd quarter, settling at 93.4%, a decline of 1.6 percentage points from the previous year. This positioning, while on the lower spectrum among the nation’s top 150 markets, still hovers near the long-term average occupancy rate of around 94%. The 3rd quarter of 2023 saw the lion’s share of submarkets with occupancy rates falling below the 94% mark, the exceptions being predominantly in the less bustling suburban or outer urban submarkets. Dissecting occupancy by asset type reveals Class A properties at the helm with 93.8%, succeeded by Class B at 93.3%, and Class C, the more affordable segment, registering at 92.9%.
In the year-ending 3rd quarter 2023, the Dallas Metroplex saw a modest decline in new lease rents, registering a 0.5% decrease. This rate of change was consistent across both Dallas and Fort Worth metro divisions. Within the market, Class A effective rents experienced a slight dip of 0.1%, while Class B rents fell by 1.0%. Conversely, Class C properties managed a marginal increase of 0.3% in rents, despite occupancy dropping below 93%. Over half of the 48 submarkets in Metroplex observed mild to moderate rent reductions over the year, with the most robust rent growth recorded in outer urban submarkets.
| Submarket | Average Occupancy | Annual Occupancy Change | Average Monthly Rent | Annual Rent Change |
|---|---|---|---|---|
| Addison/Bent Tree | 93.8% | -1.6% | $1,583 | -0.9% |
| Allen/McKinney | 93.7% | -1.6% | $1,673 | -2.7% |
| Burleson/Johnson County | 93.4% | -3.2% | $1,449 | -0.5% |
| Carrollton/Farmers Branch | 94.6% | -1.2% | $1,609 | 0.5% |
| Central Arlington | 92.4% | -2.0% | $1,286 | 0.8% |
| Central/East Plano | 93.5% | -2.0% | $1,633 | -2.7% |
| Denton | 93.6% | -1.9% | $1,425 | 1.4% |
| East Dallas | 94.0% | -1.1% | $1,889 | 2.3% |
| East Fort Worth | 89.9% | -3.9% | $1,140 | 0.5% |
| Ellis County | 93.6% | -2.1% | $1,484 | 4.8% |
| Far East Dallas | 93.2% | -1.1% | $1,225 | 1.2% |
| Far North Dallas | 92.7% | -2.5% | $1,366 | -2.9% |
| Frisco | 94.0% | -1.3% | $1,800 | -2.2% |
| Garland | 93.3% | -2.0% | $1,412 | 2.0% |
| Grand Prairie | 93.6% | -1.4% | $1,491 | -0.8% |
| Grapevine/Southlake | 94.7% | -0.4% | $1,735 | -0.6% |
| Haltom City/Meacham | 93.1% | -1.3% | $1,360 | -0.3% |
| Hunt County | 95.7% | -1.0% | $1,079 | 6.2% |
| Hurst/Euless/Bedford | 93.4% | -1.6% | $1,431 | -0.1% |
| Intown Dallas | 93.5% | -1.1% | $2,143 | -1.3% |
| Intown Fort Worth/University | 93.6% | -0.5% | $1,620 | -1.7% |
| Kaufman County | 93.1% | -3.7% | $1,444 | 0.1% |
| Las Colinas/Coppell | 93.6% | -1.7% | $1,777 | -1.1% |
| Lewisville/Flower Mound | 94.1% | -0.9% | $1,582 | -1.4% |
| Love Field/Medical District | 93.5% | -1.2% | $1,574 | -1.7% |
| Mesquite | 93.3% | -1.5% | $1,258 | 3.0% |
| North Arlington | 92.3% | -1.1% | $1,319 | 0.8% |
| North Dallas | 92.9% | -2.5% | $1,459 | 0.3% |
| North Fort Worth/Keller | 93.2% | -2.1% | $1,626 | -2.3% |
| North Irving | 92.9% | -2.9% | $1,424 | 1.0% |
| North Oak Cliff/West Dallas | 93.3% | -1.5% | $1,552 | 0.1% |
| Northeast Dallas | 92.2% | -1.9% | $1,219 | -1.0% |
| Northeast Fort Worth/North Richland Hills | 93.0% | -2.2% | $1,453 | -3.0% |
| Northwest Dallas | 94.0% | -2.7% | $1,257 | 7.0% |
| Oak Lawn/Park Cities | 93.5% | -1.3% | $2,363 | -1.1% |
| Richardson | 94.0% | -1.5% | $1,715 | -1.8% |
| Rockwall/Rowlett/Wylie | 91.4% | -2.1% | $1,642 | -1.8% |
| South Arlington/Mansfield | 93.0% | -1.9% | $1,531 | -0.5% |
| South Fort Worth | 93.2% | -2.3% | $1,199 | 0.9% |
| South Irving | 93.9% | -2.0% | $1,313 | 2.3% |
| Southeast Dallas | 94.6% | -0.7% | $1,172 | 9.3% |
| Southern Dallas County | 92.1% | -2.9% | $1,371 | -0.1% |
| Southwest Dallas | 91.4% | -2.4% | $1,189 | 4.1% |
| Southwest Fort Worth | 92.7% | -1.3% | $1,285 | 1.5% |
| The Colony/Far North Carrollton | 93.9% | -1.6% | $1,750 | -0.2% |
| West Fort Worth/Parker County | 93.3% | -1.6% | $1,336 | -1.8% |
| West Plano | 94.0% | -0.8% | $1,803 | -2.6% |
| Zang Triangle/Cedars/Fair Park | 94.5% | -0.8% | $1,475 | -0.8% |
| Dallas Metroplex | 93.4% | -1.6% | $1,552 | -0.5% |
Number of Units Under Construction
Number of Units UC Delivering In the Next 4 Quarters
| Submarket | Units Under Construction | % of Total UC | Units UC Delivering In the Next 4 Quarters | % of Total UC Delivering Next 4Q |
|---|---|---|---|---|
| Addison/Bent Tree | 730 | 1% | 440 | 1% |
| Allen/McKinney | 10,987 | 15% | 6,837 | 14% |
| Burleson/Johnson County | 1,506 | 2% | 901 | 2% |
| Carrollton/Farmers Branch | 964 | 1% | 528 | 1% |
| Central Arlington | 651 | 1% | 651 | 1% |
| Central/East Plano | 1,922 | 3% | 1,315 | 3% |
| Denton | 4,298 | 6% | 2,736 | 6% |
| East Dallas | 1,086 | 2% | 616 | 1% |
| East Fort Worth | 0 | 0% | 0 | 0% |
| Ellis County | 1,538 | 2% | 1,275 | 3% |
| Far East Dallas | 56 | 0% | 56 | 0% |
| Far North Dallas | 897 | 1% | 801 | 2% |
| Frisco | 8,222 | 11% | 6,209 | 13% |
| Garland | 1,726 | 2% | 634 | 1% |
| Grand Prairie | 3,390 | 5% | 2,626 | 5% |
| Grapevine/Southlake | 0 | 0% | 0 | 0% |
| Haltom City/Meacham | 730 | 1% | 639 | 1% |
| Hunt County | 152 | 0% | 152 | 0% |
| Hurst/Euless/Bedford | 395 | 1% | 59 | 0% |
| Intown Dallas | 3,728 | 5% | 2,303 | 5% |
| Intown Fort Worth/University | 2,089 | 3% | 1,827 | 4% |
| Kaufman County | 1,601 | 2% | 819 | 2% |
| Las Colinas/Coppell | 1,914 | 3% | 1,179 | 2% |
| Lewisville/Flower Mound | 2,357 | 3% | 2,038 | 4% |
| Love Field/Medical District | 1,253 | 2% | 782 | 2% |
| Mesquite | 0 | 0% | 0 | 0% |
| North Arlington | 324 | 0% | 24 | 0% |
| North Dallas | 571 | 1% | 171 | 0% |
| North Fort Worth/Keller | 1,705 | 2% | 1,419 | 3% |
| North Irving | 0 | 0% | 0 | 0% |
| North Oak Cliff/West Dallas | 1,408 | 2% | 1,324 | 3% |
| Northeast Dallas | 893 | 1% | 893 | 2% |
| Northeast Fort Worth/North Richland Hills | 678 | 1% | 678 | 1% |
| Northwest Dallas | 0 | 0% | 0 | 0% |
| Oak Lawn/Park Cities | 937 | 1% | 152 | 0% |
| Richardson | 1,095 | 2% | 711 | 1% |
| Rockwall/Rowlett/Wylie | 2,609 | 4% | 2,006 | 4% |
| South Arlington/Mansfield | 570 | 1% | 533 | 1% |
| South Fort Worth | 3,092 | 4% | 1,344 | 3% |
| South Irving | 0 | 0% | 0 | 0% |
| Southeast Dallas | 0 | 0% | 0 | 0% |
| Southern Dallas County | 65 | 0% | 65 | 0% |
| Southwest Dallas | 866 | 1% | 866 | 2% |
| Southwest Fort Worth | 0 | 0% | 0 | 0% |
| The Colony/Far North Carrollton | 1,772 | 2% | 769 | 2% |
| West Fort Worth/Parker County | 2,633 | 4% | 1,912 | 4% |
| West Plano | 0 | 0% | 0 | 0% |
| Zang Triangle/Cedars/Fair Park | 840 | 1% | 756 | 2% |
| Dallas Metroplex | 72,250 | 100% | 49,046 | 100% |
Navigating through to the latter part of 2023, the Dallas market maintained a consistent pace in transaction activities, with around $3.1 billion being exchanged for 88 properties since the onset of the year, according to Real Capital Analytics. Although this figure indicates a 64.6% dip relative to the same timeframe last year, Dallas holds firm as one of the premier markets nationwide in cumulative sales volume. The average price per unit registered at $188,800, reflecting a 4.4% contraction compared to the preceding year. The compelling economic and demographic dynamics, together with low entry barriers and robust multifamily fundamentals, have continually attracted investors to the Dallas Metroplex. As a result, the metroplex has witnessed unprecedented capital investments over the past decade. This trend is expected to sustain, drawing investor interest even amidst the challenging market conditions currently at play.
*Most Active Buyers and Sellers are based on the sale volume of apartment units.
* Transaction data is for the whole Metroplex
* Trailing 4Q average PPU
* Preliminary Data from RCA – Individual conventional MF transaction $2.5M +
In the third quarter of 2023, the Dallas metropolitan region witnessed significant economic advancements, marked by a 2.5% surge in its Gross Domestic Product (GDP). This development was paralleled by a net addition of 178,600 jobs, illustrating a 4.4% escalation in employment. As of July, the unemployment rate was pegged at 3.8%, marginally exceeding the national average, also 3.8%. The professional and business services sector spearheaded job additions, introducing 39,100 positions, which signifies a 5.1% growth. Additionally, the trade, transportation, and utilities sector observed a commendable upswing by adding 23,200 jobs, equivalent to a 2.6% annual increase. Despite initial job deficits induced by the pandemic, the current employment base now comfortably exceeds pre-pandemic levels from February 2020 by approximately 339,600 jobs, or about 12%. The metro area of Dallas, hosting the headquarters of 22 Fortune 500 companies, fortifies its growing corporate foundation, with a significant presence in the Dallas central business district, the Dallas North Tollway corridor, and the Las Colinas area.
July Annual Jobs Created
July 23 Employment growth
July 23 Unemployment rate
3.8% us July rate
| Sector | Change from July 2022 to July 2023 | Percent Change |
|---|---|---|
| Professional and business services | 39,100 | 5.1% |
| Trade, transportation, and utilities | 23,200 | 2.6% |
| Mining, logging, and construction | 22,300 | 9.5% |
| Education and health services | 19,600 | 4.1% |
| Financial activities | 18,800 | 5.2% |
| Government | 14,000 | 3.2% |
| Leisure and hospitality | 13,400 | 3.3% |
| Other services | 13,200 | 10.1% |
| Manufacturing | 10,600 | 3.5% |
| Information | 4,400 | 4.8% |
The cost of living in the Dallas Metroplex, with an index score of 102.9, slightly surpasses the national average, yet the housing market remains more affordable with a housing index of 98.1 and a median home sales price of $398,800. When compared to Los Angeles-Long Beach, CA, Dallas boasts significantly lower costs in key areas—housing is 59.5% less expensive, and transportation costs are 30.3% lower, making it a financially appealing location for many individuals.
102.9
$3,020
106.3
111.1
89.6
$398,800
The “Cost of Living” index score provides a comparative assessment of the relative expense involved in maintaining a standard of living in a specific area, benchmarked against a national index score of 100.
Source: COLI; BLS; Consumer Price Index for All Urban Consumers (CPI-U): Selected areas, all items index, July 2023
Leading the nation in new apartment supply, the Metroplex saw the completion of 25,386 units in the year-ending 3rd quarter of 2023. Despite this influx, strong job growth and in-migration have fostered demand and economic recovery, lending stability to the market amidst prevailing economic uncertainties. New properties in lease-up have fared relatively well, particularly in the northern suburbs. Moving forward, the Metroplex apartment market is expected to rely on its solid underlying demand drivers to uphold market fundamentals. Nonetheless, the inflow of new supply may pose short-term challenges to market performance. The next 12 months are projected to see a surge in deliveries beyond recent peak levels, with 49,046 units earmarked for completion by the year-ending 3rd quarter of 2024.
