Dallas-Fort Worth Multifamily
2024 Investment Forecast
Nation-Leading Job Growth Stimulates
Historic Construction in Several Suburbs
Record development visible in neighboring northern submarkets. The suburban trio of Allen, McKinney and Frisco have more rentals underway with scheduled completion dates between 2024-2026 than at least 35 major U.S. metros, with 18,800 units slated to finalize in the next three years here. Other local submarkets — Ellis County, Kaufman County, South Fort Worth and West Fort Worth-Parker County — are on pace for 25-plus percent inventory growth by the end of 2026 as well. In total, more than 20 separate areas have over 1,000 rentals underway, creating the nation’s largest active pipeline. The Metroplex is likely nearing peak construction, however, as elevated debt costs, persistent labor pressures, hiking operating expenses and softer absorption have decelerated permit activity. Looking beyond the ongoing supply wave that is poised to lift vacancy and challenge rent growth, a drop in development would brighten the long-term outlook amid nation-leading employment gains. By the end of this year, the Metroplex workforce is expected to approach 4.5 million, inching within 210,000 jobs of Los Angeles — currently the nation’s third-largest employment base. For context, that gap was no closer than 750,000 prior to the pandemic. Aiding luxury rental demand, Dallas-Fort Worth’s professional and business services sector, which includes a variety of higher wage industries, grew by over 160,000 positions from 2020-2023, the largest bump among job segments.