From Dallas Business Journal, we know that current ongoing multifamily development in the DFW area is about 40,349 units, with Washington DC coming in second right now at 30,302 units. We also know that the combined DFW metros delivered 6,936 new apartments in the most recent quarter, which was the most throughout the nation. Houston came in second-highest in the nation with 5,428 new units.
On the demand side, the combined DFW total led the nation in apartment absorption in the third quarter of 2020, with the quarterly increase in the number of occupied units coming in at 8,957 units, according to RealPage. That demand total is just under the 9,504 units absorbed in 3rd quarter 2019. But it’s more than doubled from the 3,832 net apartment total in the previous quarter, which reflected the worst of the COVID-19 impact.
There has been concern about a DFW overbuilding of units, and being 10,000+ units up on multifamily development over the next-biggest city in the US might stoke those concerns. But some of the building boom is concentrated in specific areas. If you go look at the first link in this post, from Dallas Business Journal, they have a slideshow of different areas of DFW and the building (in units) that has been done across Q1-Q3 of 2020. Some notable ones:
- Far East Dallas: 237 units Q1 | 185 Q2 | 107 Q3
- H.E.B.: 285 | 228 | 57
- North Dallas: 418 | 289 | 100
- South Irving: 282 per quarter, each quarter (consistency!)
- Ellis County: 435 | 330 | 273
- West Plano: 470 | 373 | 373
- SW Fort Worth: 594 | 495 | 395
- Love Field: 660 | 528 | 395
- Grapevine and Southlake: 876 | 654 | 303
- Richardson: 804 | 678 | 484
- Grand Prairie: 1,217 | 1,061 | 1,086
- Carrollton and Farmers Branch: 1,895 | 1,214 | 917
- Lewisville and Flower Mound: 2,351 | 2,103 | 1,739
Just a helpful link at where units are coming in the fastest. If you overlap this with information on where DFW corporate relocations end up, you have a semblance of where the next "hot" places to live might be.
And if you want guidance to navigate towards (or away from!) those places, don't hesitate to contact us.