2015 was a banner year for multifamily development in Dallas. At any given time, a dozen or more high-rise units were in the works somewhere in the metroplex. Many smaller apartment communities cropped up between Fort Worth and Plano during the calendar year.
Unprecedented in Scale
Exceeding even the real estate boom of the 1980s, the pace of development in the apartment market has increased by nearly 300% since 2005. As New Year 2016 rolled around, nearly 40,000 units were under construction.
Why the Boom?
From office and industrial construction to preowned home sales, the North Texas real estate market at large is booming. The biggest driver of this development is population growth. The area’s population has surged by around 130,000 annually for the past several years. The exceptional growth in the multifamily sector has benefited in particular from large numbers of young professionals not yet ready or less interested in the responsibility of home ownership. Empty nesters looking to downsize and move closer to an urban center also spur the boom.
Looking to the Future
Market analysts suspect that market growth in this cycle peaked in 2015, after five years of rapidly increasing growth. While it is likely that fewer big multifamily development contracts will be drawn up in 2016 than in 2015, steady population and jobs growth should keep demand for new multifamily units high.
It’s a great time to be involved in North Texas real estate. New apartments are increasingly amenable, and apartment hunters have more variety to choose from than ever. It will be interesting to see how much more the DFW cityscape changes as a result of development over the next few years.