Saturday, December 11, 2010

Apartment construction slows markedly in DFW

The number of new apartments on the Fort Worth market at year's end will be down 70 percent from last year, a Marcus & Millichap real estate firm research reports finds.

About 1,950 apartments opened in Dallas-Fort Worth in the third quarter.
For the year, the real estate firm predicts that about 7,800 apartments will be built in the Metroplex, 85 percent of which will be in Dallas.

In 2009, developers completed about 17,000 units, the report says.
The apartment vacancy rate was 7.8 percent in Dallas and 8.2 percent in Fort Worth at the end of the third quarter, the report said.
Job growth in North Texas, combined with a drop in the construction of apartments, will strengthen the market, the report said.
Many renters are upgrading to higher-quality apartments because owners offered concessions and lowered rents during the recession.

"The Fort Worth area continues to post a higher vacancy rate than the Dallas portion of the market, but improvements have been more pronounced in Fort Worth due in part to a significant reduction in apartment development activity," the report said.

Vacancy rates by submarket are: southeast Tarrant County, 6 percent; Hurst-Euless-Bedford, 6.7 percent; Grapevine, 7.6 percent; southwest Fort Worth, 8 percent; central Arlington, 8.2 percent; northwest Fort Worth, 8.5 percent; north Tarrant County, 8.8 percent; north Arlington, 9.4 percent, and east Fort Worth, 10.7 percent.



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