Build It, and They Will Come… in Droves to Lease in North Texas

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If it appears that apartments are going up on every street corner in Dallas, well, they are. The Dallas-Fort Worth are is going to be the nation’s top apartment leasing market over the next three years, according to a new report by the folks at Jones Lang LaSalle.

Perhaps you, like me, see the cranes and scaffolding and think, gee we need them now but by the time they are completed…maybe there will be no more renters?

Apartments for leaseNo worries: Jones Lang LaSalle researchers predict there will be enough renter demand — too much, in fact, so that the new supply still won’t keep up with the increased demand. The bulk of the rental units are going up in central Dallas, Lewisville, Las Colinas, the Allen-McKinney area, North Fort Worth and Denton, this according to MPF Research reports.

You see, as Steve Brown pointed out today,

“D-FW, Houston, Atlanta and Phoenix are ranked as the top net leasing markets for apartments through 2017, in the new report.”

It’s all about job growth, which spurs household growth, the guys at JLL told Steve. But they also said that this may be a shocker to the tech-heavy regions — that more jobs and people to lease all these units may be headed our way than to, say, the Bay area.

I was just in San Francisco this weekend, and have never seen such a dearth of apartment housing. Though construction is in progress, it will never keep up with demand. In Palo Alto, Stanford University owns mega land and housing. Young people are desperately looking for affordable apartments, but they are getting $3096 average rents in San Francisco, and a whopping $2128 in Santa Clara County, San Jose, the mecca of high-tech jobs with Google, Paypal, and hundreds of start-ups. Many kids live in group houses, or reverse-commute to San Francisco. Compare that to $862, the average rent for Dallas Fort Worth. But many higher-end and luxury apartments in Dallas are charging closer to the $2000 mark, and getting it!

Steve says about 25,000 apartments are under construction in North Texas – more than any other U.S. metropolitan area. We are a leader in job growth, like Houston and Austin. So I guess those cranes and scaffolds are here to stay.

In Steve’s report, he also said Jones Lang LaSalle has christened the D-FW area as one of the country’s top apartment investment markets: $5.6 billion in sales last year. Guess who saw more apartment sales volume than us: New York, Washington, D.C. and Los Angeles.

Guess that explains why the new CEO of Belks, Salem Boohaker, wants to lease in Uptown. That place is so hot if it had a river, I swear they’d find some landfill, fill it, and just keep on building.

mm

Candy Evans

A real estate muckraker, Candy Evans is one of the nation’s leading real estate reporters. She is also the North Texas real estate editor for Forbes.com, CultureMap Dallas, Modern Luxury Dallas, & the Katy Trail Weekly. Candy has written for Joel Kotkin’s The New Geography, Inman Real Estate News, plus a host of national sites. Constantly breaking celebrity real estate news, she scooped former president George W. Bush's Dallas home in 2008. She is the founder and publisher of her signature CandysDirt.com, and SecondShelters.com, devoted to the vacation home market. Her verticals have won many awards, including Best Blog by the venerable National Association of Real Estate Editors, one of the nation’s oldest and most prestigious journalism associations. Candy holds an active Texas real estate license but does not sell. She is on the Board of Directors of Braemar Hotels & Resorts (BHR).

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  1. […] We just can’t build apartments fast enough in Dallas, it seems. Apparently Sarofim Realty Partners and Lincoln Property Company agree, as new plans reported by Steve Blow of the DMN include 165 luxury rental units for the mixed-use development at 4501 Cole. […]

  2. […] We just can’t build apartments fast enough in Dallas, it seems. Apparently Sarofim Realty Partners and Lincoln Property Company agree, as new plans reported by Steve Blow of the DMN include 165 luxury rental units for the mixed-use development at 4501 Cole. […]

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