Why are so many investors hot on Dallas apartments? Why are more people choosing to become landlords instead of selling their homes after moving to a new one?
It might have something to do with demand for rentals and rates inching skyward. In fact, RentRange has Dallas/Fort Worth ranked at the No. 9 spot for year-over-year rental rate increases for single-family residences, and Dallas is posting huge gains in rental rates for apartments.
That, of course, might have some people saying this:
Well, they better get used to it. If you’re hoping to see some affordable apartments getting built in Dallas, you may have to wait a while. Luxury developments are the majority of what’s going up in West Dallas, North Oak Cliff, and North Dallas, as companies such as Transwestern and Trammell Crow Co. are buying up former industrial sites and plunking down pricey rentals in areas that are gradually gentrifying thanks to cultural amenities.
And they just keep coming, as Steve Brown notes in his piece about The Mark at Midtown Park. It’s an apartment community along North Central Expressway and Meadow Road, just a hop, skip, and jump from Royal Oaks Country Club developed by Dallas businessman Carl Wescott, designed by BGO Architects, and built by Balfour Beatty Construction. It looks a little something like this:
As Eric Nicholson noted in his piece for the Dallas Observer, not all of these buildings are stunning feats of architectural genius. In fact, they all kind of look the same. Critiques aside, isn’t it interesting that rents are going up, up, and away, and yet developers seemingly can’t build enough units? That’s a great recipe for any investor.