Another day, another study about declining rents.
This time, Apartment List’s November 2020 Dallas Rent Report shows that Dallas rents over the past month have declined significantly.
Last week, a RENTCafé analysis found that Frisco and Plano ranked first and second in the percentage of renters vs. homeowners over the past decade.
Apartment List also tapped the Census Bureau data for its report on prices. Apartment List also compared the numbers with its listing data.
Dallas rents have declined 0.5 percent over the past month, the seventh consecutive drop — pretty much since the COVID-19 pandemic started — and are down 2.6 percent in comparison to the same time a year ago. Median rents in Dallas are $981 for a one-bedroom apartment and $1,176 for a two-bedroom.
Year-over-year, Texas’ average rent fell 2.1 percent while the national average rent dropped 1.4 percent.
Of the largest 10 cities in the Dallas metro area, half have seen increases, according to Apartment List.
Arlington has experienced the fastest rent growth with a year-over-year increase of 6.2 percent. In Arlington, the median two-bedroom goes for $1,238 while one-bedrooms rent for $1,015.
Plano, which has the largest one- and two-bedroom apartments in the nation according to an ApartmentGuide.com study, has the most expensive rent in the area. In Plano, the 2BR median is $1,513 despite rents decreasing 0.3 over the past month and 1.7 percent over the past year.
Fort Worth has the least expensive rents in the D-FW area. In Fort Worth, a 2BR median is $1,125 although rents fell 0.2 over the past month and 0.8 percent over the past year.
Could these reductions be attributed to rental incentives, such as free or reduced rent, gift cards or other concessions? You bet.
According to a Zillow report, these incentives amount to more than an 11 percent in rent reduction.
According to a Zillow report, 41 percent of apartment properties in North Texas are offering incentives to attract tenants. In 2019, that number was 23.7 percent.
“The effective savings rate is what renters would save on their typical housing costs over the course of their lease because of both lower rent prices and concessions,” Zillow economist Joshua Clark said in the report. “Those savings could be enough to cover the cost difference between a one-bedroom and a two-bedroom unit.”
Other Notable Reports
- Texas Housing Insight: Dallas-Fort Worth’s rate of homeownership hit 69 percent, according to a report from the Real Estate Center at Texas A&M University. The state’s homeownership rate reached an all-time high of 70 percent, topping the nationwide rate of 67.4 percent. Texas’ rate exceeds the nation’s 67.4 percent, the first time that has happened since 2012. “Strong sales activity during the third quarter pushed the Texas homeownership rate to the unprecedented high,” says Center Chief Economist Dr. Jim Gaines. “Nationally, homeownership fell across all races and every age group, except those 65 and older.” Read more here.
- Texas Manufactured Housing Survey: New orders and sales for the state’s manufactured housing industry declined in October, according to the latest Texas Manufactured Housing Survey (TMHS). This decline follows a growth stretch during the second and third quarters. “Retail sales of manufactured homes typically slow down through the winter and then come on strong as spring hits in March,” says Rob Ripperda, vice president of operations for the Texas Manufactured Housing Association. Read more here.