Both the Dallas-Plano-Irving and the Fort Worth-Arlington metropolitan areas saw a slight decline in the rates of annual apartment rent growth in April, according to Axiometrics. The Dallas metro saw a drop of 20 basis points to 5.8 percent, after standing at 6.0 percent in March. Fort Worth experienced a drop from 6.9 percent from 6.2 percent.
Stephanie McClesky, vice president of research, for Axiometrics, was not surprised by the slight drop in numbers and said both markets are being affected by a first-quarter increase in supply. “It goes without saying that the increase in supply will exert a slight pressure on rent growth,” McClesky said.
Both markets are still growing at a brisk rate and seeing strong demand. The demand comes from continued job growth across North Texas. In March, Fort Worth’s job growth was 2.6 percent, with an unemployment rate of 4.1 percent. Dallas-Plano-Irving’s job growth and unemployment were both at 4 percent, with the market adding 91,000 new jobs for the 12-month period ending March 2015.
Abundant jobs is the reason both metros are at a “full” occupancy—meaning new supply is readily absorbed. According to Axiometrics, a market is stable at 90 percent, and full at 95 percent. In April, Dallas had 95.1 percent occupancy, while Fort Worth stood at 95.4 percent.
“What we have is a situation in which a lot of new supply is being delivered, yet because of incredible job growth, absorption isn’t really a problem,” McCleskey said. “By the end of this next quarter, however, we should start to see more downward pressure exerted on occupancy and rent growth, as more units come to the market.”
