DFW Apartments Will Be More Expensive in 2015, Research Firm Says
Jimmy "The Rent Is Too Damn High" McMillan would know just what to say.
Further confirmation of what all of us who live here already know comes from the 2015 National Apartment Index: All of our buildings are full, and our rents are even more too damn high than they used to be.
Marcus and Millichap, the research firm that does the annual index, predicts that 2015 vacancy rates will remain under 5.5 percent, rising only slightly from 2014's 13-year low. Continued demand, according to the firm, comes from the large companies moving to or expanding in the area -- such as State Farm and Toyota -- and the nearly 114,000 jobs it estimates will be created in the Dallas area in 2015.
The average monthly price for a rental unit, either an existing one or one of the new ones, is $954, a 5.1 percent increase over the last year. Keeping prices up despite increased supply is the fact that many of the new units to be completed in 2015 are luxury apartments in the northwest suburbs, Oak Lawn, the Park Cities, the downtown core and North Oak Cliff.
DFW's expected employment growth trails only Austin among the cities surveyed. Marcus and Millichap also expressed optimism about the Dallas area's ability to withstand still sliding oil prices because of diversity within the local economy.
Buying a house or condo to escape rising rents isn't really an option either, as Amy Silverstein reported for Unfair Park last week, purchasable inventory is at a 10-year low.
See also: The Dallas Housing Market Is Still Nuts