Dallas/Fort Worth Multifamily Figures Q4 2022
March 2, 2023 5 Minute Read
- Despite recent economic uncertainty, employment indicators showed continued signs of strength, particularly at the local market level, at year-end 2022.
- Comparing year-over-year, DFW has gained 172,336 non-farm jobs since December 2021, a 4.3% increase.
- Demand was outpaced by supply in Q4 2022, translating into negative absorption for a third consecutive quarter at 1,808 units, but less steep of a drop compared to Q3 2022.
- As a result, occupancy trended down in Q4 2022 to 94.3% from 95.0% in Q3 2022, a 70-bps decrease.
- In Q4 2022, rents remained flat at $1.74/SF while delivered product and construction starts ticked up quarter-over-quarter.
- More than 6,300 units were delivered in Q4 2022, an increase of 538 units since last quarter, yielding more than 21,000 in completions for 2022.
- An additional 10,191 units broke ground in Q4 2022, bringing the total active pipeline to 64,652 units under construction.
- Nationally, multifamily rents and demand continued to normalize from the instability created from the pandemic with averages hovering slightly below pre-pandemic levels.
- Locally, DFW has already begun to see a slight price decrease within the already tight housing market as interest rates continue to rise, which has increased demand within the multifamily market through continuous growth in construction starts, deliveries, and long-term absorption.