Fort Worth and Dallas apartment rents remained mostly unchanged in August, continuing a trend that sees the annual effective rent growth down and average rents almost the same as in July, according to Axiometics, a Dallas-based apartment and student housing market research firm.
“Though job growth in Dallas is extremely strong, the rate is lower than it was a year ago,” said Jay Denton, the firm’s senior vice president of analytics, commenting in a news release.
With new inventory hitting the market, reduced demand has made absorption more difficult, Denton said. “So property owners, especially in urban-core areas, are hesitant to raise rents too much.”
DFW employers added almost 110,000 jobs in the 12 months ending in July. Fort Worth’s apartment inventory is expected to gain about 2,045 units this year and 4,165 next year. Meanwhile, Dallas is expected to add 17,069 new units this year and 23,255 next year.
Construction labor shortages have delayed several projects set for 2016 completion, pushing them back to 2017, according to Axiometrics information.
Effective rent in the Fort Worth area rose 5.5 percent in August 2016 compared to the same month last year. Meanwhile, the Dallas rate rose 4.7 percent in the same period. August occupancy rates in Fort Worth dropped from July to August this year but rose in Dallas.