Dallas, Texas – Amid a persistent nationwide housing crisis, the Dallas-Fort Worth metropolitan region is poised to witness the construction of approximately 24,000 new apartment units in the current year, according to a comprehensive analysis recently published by RentCafe.
Dallas-Fort Worth lags only behind New York City in terms of residential development
This prolific activity places the Texas metropolis second only to New York City in terms of burgeoning residential development. The RentCafe report, which gleaned its insights from data compiled by real estate intelligence service Yardi Matrix, elucidates the disparate impact of this construction surge across various regions in the United States.
The increasing scarcity of affordable housing has been a significant driver behind the escalation of rental and purchase prices across the country. However, the influx of a staggering 1.2 million new apartment units during the pandemic period has acted as a mitigating force against the astronomical acceleration of rent costs nationwide. This effect, though, is not uniformly distributed. The RentCafe study indicates that the preponderance of this new housing stock—comprising principally apartment units—has been funneled into a mere 20 metropolitan regions, which are home to approximately 41% of the nation’s renting populace.
Dallas grapples with affordable housing units
Of particular note is the fact that between 2020 and 2022, the Dallas-Fort Worth area outstripped all other major metropolitan regions in the country in terms of the number of new apartments added. However, this surge in construction has not necessarily aligned with the demand for affordable housing; an estimated 89% of the units completed within this timeframe have been designated as high-end accommodations. This diverges markedly from the more economical housing solutions ardently sought by a substantial swath of renters.
While the current year is anticipated to see an increase in rental units compared to 2022, it falls short of the construction rates observed in the years 2020 and 2021. Specifically, Dallas is projected to bring an additional 4,100 apartment units to the market, Fort Worth is slated to contribute nearly 2,500, and Frisco is expected to supplement the housing supply with close to 2,300 new units.
Even as the region ramps up its construction activities, the study underscores the inescapable reality that the Dallas-Fort Worth area continues to grapple with a housing shortfall. The locus of this scarcity is exacerbated by the unparalleled rate at which individuals are relocating to the region—more so than to any other area in the country, as per the report’s findings.
Looking ahead to the medium-term horizon, an ambitious one million rental units are tentatively scheduled for completion by the year 2025. Nonetheless, this optimistic projection could be hindered by a confluence of challenges, including escalating construction costs and other unforeseen economic headwinds, which may conspire to decelerate the pace at which developers are able to bring these much-needed units to fruition.