Dallas-Fort Worth had the hottest apartment market nationwide last year, according to a study released Monday by Carrollton-based MPF Research.
“The Dallas-Fort Worth apartment sector continues to outperform expectations,” said Jay Parsons, MPF’s national market analysis manager. “It’s certainly reflective of the strength of the local economy that apartment demand remains so robust at the same time single-family home sales are back to 2007 volumes.”
Last year, Dallas-Fort Worth led the nation with demand for 16,647 apartments, but only 12,977 new units were added, pushing occupancy to 94.4 percent, well above the Metroplex’s 10-year average of 92.2 percent, MPF said.
In the fourth quarter of 2013, 3,074 new apartments were added to the market, and 2,739 of those units, or 89 percent, were leased, MPF said. The leasing percentage was the largest in any fourth quarter since 2000, the company said.
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Moreover, rents increased 3.4 percent last year, topping the national average of 2.8 percent, MPF said. At year’s end, rents averaged $892 in Dallas and $777 in Fort Worth. Rents had also increased in 2011 and 2012.
Some of the biggest increases occurred in the inner-ring suburbs, including North Richland Hills and Haltom City, where rents rose 6 percent, the report said.
About 16,915 new apartments are expected to open this year in the Metroplex, MPF said.