DFW rent prices

If it feels like you’re paying a lot for rent, you’re probably right: huge demand for DFW apartments in 2016, coupled with a shortage of supply, has pushed rents and building occupancy to record levels.

DFW rent prices are now averaging almost $1,100 a month, according to MPF Research. Add to that a vacancy rate of under 4 percent, and you’ve got demand at an all-time high. The past year’s demand total for apartments in North Texas jumped to 27,120 units, up sharply from the 2015 volume of about 17,000 units.

Fort Worth ranked sixth in the nation for rent increases in 2016, going up 6.7 percent over the previous year. Dallas was close behind, at number 11, with a 6 percent increase over 2015.

“With out apartment clients, we’re getting a lot of people relocating who are unsure if they want to buy or not,” said David Maez, co-founder of Vivo Realty Group. “I think we going to see competitive rent prices continue, even with the inventory that’s coming up.”

There are now almost 50,000 apartments under construction in North Texas, which is about 9 percent of nation’s building activity. That’s the country’s biggest block of product on the way by a large percentage, according to RealPage. About 29,000 of those apartments scheduled for completion in 2017.

“Dallas-Fort Worth is the country’s top spot for apartment demand by a huge margin, which speaks to the strength of the local job market and household formation pace,” said RealPage chief economist Greg Willett. “There’s a great mix of expansion in both the urban core and the suburbs.”

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Photo courtesy Bright Realty

Artist rendering of Discovery at The Realm in Castle Hills in Lewisville. Photo courtesy Bright Realty.

Since the first homeowners moved into Lewisville’s Castle Hills community in 1998, more than 12,000 people have decided to call the master planned community home, and it is about 60 percent built-out today.

Located off State Highway 121 and Farm-to-Market Road 544, Castle Hills is 60 percent residential and has single-family houses ranging from about $300,000 to $1.5 million and more.

Developer Bright Realty is enticing a different demographic with their next stage of work at Castle Hills with a $75-million project called Discovery at The Realm. These 4,000 luxury rental apartments are being built with young professionals in mind.

Tim McNutt, Executive VP of Multifamily Development at Bright Realty and a Castle Hills resident himself, said these apartments are part of the strategy to develop Castle Hills in stages.

“The long-term plan was to establish the single-family housing, then to develop the remaining commercial properties,” McNutt said. “Along with the commercial [real estate], we wanted to expand the demographic and this will broaden our appeal to a whole new market.”

Photo courtesy Google Maps

Photo courtesy Google Maps

Bright Realty broke ground in December on Discovery at The Realm, which will include high-end, three podium-style buildings (underground parking with four stories of apartments above) on over 20 acres of land located south of Windhaven Parkway at Castle Hills Drive. The first units will be available in April 2016, with all phase one units completed by October 2016. Jump to read more!

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