Steve Brown, Real Estate Editor
Dallas-area apartment renters may have to dig a little deeper
this year. Dallas apartment rents are forecast to rise by more than 4
percent after a slowdown in 2018 cost increases. The new forecast by Yardi Systems is one of several recent updates on the local apartment market. Dallas rents rose by 2.4 percent in 2018, less than the 3.2 percent nationwide average. The country’s biggest year-over-year rent increases in December were in Las Vegas (7.3 percent) and Phoenix (6.5percent). “Both markets are benefiting from migration out of high-cost and tax-prohibitive areas in California and the Midwest,” according to Yardi’s new report. “Job growth in tech and finance have attracted educated millennials, and warm weather and a lower cost of living continue to bring retiring Baby Boomers. Apartment rent growth in the Dallas-area has slowed in the last year because of the huge supply of apartments coming on the market. Yardi’s forecast of higher rent increases in 2019 runs counter
to recent trends. Nationwide apartment rents in December averaged more than $1,400 a month in the 27 major markets Yardi surveys. “Rents have increased by 31 percent since January 2011 and have grown by at least 2.9 percent every year except one since then,” according to Yardi. “While acknowledging concerns that the unusually long cycle has played out, a report on the survey cites “reasons to believe multifamily fundamentals will remain vigorous in 2019 and beyond.” In North Texas, month apartment rents average more than $1,100 a month. More than 35,000 apartments are being built in the DallasFort Worth area, the most of any U.S. metro area.