Dallas-Fort Worth Multifamily
Brisk Development Hampers Outlook;
New Rentals are Needed Longer-Term
Record-setting completion slate a fraction of total pipeline. The Metroplex will once again lead the country in apartment deliveries this year, while also achieving a new annual record for local openings. Nearly 30,000 units will finalize across 2023, representing just a sliver of the 80,000-plus rentals that have broken ground. The number of units under construction entering the second quarter of 2023 exceeded any other major U.S. market by nearly 25,000. Builders are active in all corners of the Metroplex, with at least 1,000 units underway in 25 different submarkets. Frisco and Allen-McKinney are particularly high-focus areas, with more than 10,000 rentals being constructed in each location. Both of these submarkets had sub-7 percent vacancy rates in the first quarter, but the slew of deliveries will likely present additional near-term pressure. As a whole, heightened construction will test Dallas-Fort Worth this year and keep vacancy on an upward path. New supply is needed over a longer horizon, however, to keep pace with local housing demand.