RDE Capital Group LLC

The outlook for DFW multifamily owners is becoming increasingly positive as the market moves toward a healthier balance between new supply and renter demand.

According to CoStar Group, approximately 29,245 multifamily units are currently under construction across DFW. More importantly, demand has strengthened considerably. Over the past 12 months, the market has absorbed approximately 32,132 units, compared with 25,186 units during the prior-year period.

At the same time, the pace of new deliveries is slowing. Approximately 28,223 units have been delivered over the past 12 months, down significantly from 36,943 units a year ago.

These trends are encouraging for multifamily owners. Demand is strengthening while the wave of new supply that has pressured rents and occupancy is beginning to moderate.

If absorption remains strong and new deliveries continue to decline, DFW landlords should be positioned for lower vacancy, fewer concessions, and a return to positive rent growth over the next 12 months.



After several challenging years of elevated construction and aggressive competition for renters, the supply-demand picture appears to be moving back in landlords' favor.