Is It A Renter’s Market? Apartment Construction is Booming; Occupancy, Prices are Up

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With high occupancy rates and increasing rents, it's a good time to be a landlord.

Looks like developers are working hard to keep up with demand as new apartment high- and mid-rises are going up across the region.

StreetLights Residential, a boutique development company, is building its first high-rise dubbed The Taylor, set to open in 2014. The uptown apartment building, which has rents in the $1,000-and-up range, is just one of the many rental properties planned, in construction, or opening soon.

And according to a study from Axiometrics, average rents are on the rise, too. For Dallas, occupancy is tight at a little more than 94 percent, and average rents are at $879, which is a 12.7 percent increase over 2009. To get a taste of the upscale rental market, check out the Oak Lawn area: rents have increased 19 percent since 2009, with average rents at more than $1,500.

So, are we becoming a nation of renters? And, is that a bad thing?

As Candy mentioned, restrictive lending practices and tight-fisted banks despite historically low interest rates. So, more mortgage restrictions means fewer homeowners means more renters, right?

This story from MarketWatch says increased rental occupancy and prices can really be traced to the slow recovery from the recession and high unemployment:

The unemployment rate remains stubbornly high at 8.2%, and incomes have stagnated. Fewer Americans can afford to buy a home or qualify for a mortgage, especially given tighter lending standards. As a result, home ownership declined again. It fell to 65.4% from 66% in the fourth quarter, putting it at the lowest level since 1996.

Well, what do you think? Is it a renter’s market? And is that a bad thing in our economy?

mm

Joanna England

If Executive Editor Joanna England could house hunt forever, she absolutely would. Instead she covers the North Texas housing market and the economy for CandysDirt.com. While she started out with the Real Estate Center at Texas A&M University, Joanna's work has appeared in The Dallas Morning News as well as several local media outlets. When she's not knitting or hooping, or enjoying White Rock Lake, she's behind the lens of her camera. She lives in East Dallas with her husband, son, and their furry and feathered menagerie.

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Comments

  1. mmCandy Evans says

    Developer other day told me that if you breathe and have a heartbeat, you can get financing for building an apartment complex. I'm wondering: is this 2005 all over again but for apartments? They are spreading like herpes and all is well that occupancies are up now, but what about 10 years from now…

    • Brison says

      In 10 years from now these rental apartments are going to be turned into condo conversions, at least the hi-rise versions will be, but there will be a large inventory of small one and two bedroom condos that are sometimes undesirable.

  2. mmCandy Evans says

    Developer other day told me that if you breathe and have a heartbeat, you can get financing for building an apartment complex. I'm wondering: is this 2005 all over again but for apartments? They are spreading like herpes and all is well that occupancies are up now, but what about 10 years from now…

    • Brison says

      In 10 years from now these rental apartments are going to be turned into condo conversions, at least the hi-rise versions will be, but there will be a large inventory of small one and two bedroom condos that are sometimes undesirable.

  3. Carol B says

    Candy, my son lives on the East end of Dallas near Deep Ellum (Bryan/Texas St). His one bedroom apartment has gone from $934 to $1070 when his lease is up end of this month. He moved in three years ago paying $795.

  4. Carol B says

    Candy, my son lives on the East end of Dallas near Deep Ellum (Bryan/Texas St). His one bedroom apartment has gone from $934 to $1070 when his lease is up end of this month. He moved in three years ago paying $795.

  5. JenniferC says

    The Calloway's nursery on Marsh in FB is closing this month – the space is being used to built more apartments.

  6. JenniferC says

    The Calloway's nursery on Marsh in FB is closing this month – the space is being used to built more apartments.

  7. God says

    I am God. Dont you all worry kids. Those land lord's taking benefit and raising rental price are already booked in hell. They will get screwed there like a rotten tommatto.

  8. God says

    I am God. Dont you all worry kids. Those land lord's taking benefit and raising rental price are already booked in hell. They will get screwed there like a rotten tommatto.

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