Anyone familiar with the multifamily sector understands that national trends have included more renters and limited supply. Experts tell Globest.com that, adding to these factors in the Dallas-Fort Worth area during 2011 was jobs growth.
According to the U.S. Department of Labor’s Bureau of Labor Statistics, the Dallas-Fort Worth area added close to 50,000 jobs between October 2010 and October 2011. On top of that, “we had a limited number of new deliveries,” says Brian O’Boyle, founder and managing broker of Apartment Realty Advisors’ Dallas office. “I think we had around 5,000 units delivered this past year, where historically we see 13,000 units coming to market.”
The result? “A 4% to 6% rent growth depending on class,” says Hendricks and Partners’ associate partner Tom Burns. “That, combined with cap rate compression and supply constraints which are boosting occupancy.” Even with the current conditions, “rents are still not back to the levels they were in 2007, but they’re coming back quickly,” Burns comments.
Read more...GlobeSt.com - Dallas Job Growth, Supply Constraints Highlight 2011 - Daily News Article
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