With demand for rentals at an all-time high, Dallas is expected to lead the country in new apartment completions in 2021.
Developers in Dallas are on track to finish more than 21,000 apartments this year, the most of any U.S. metro area, according to a new report by Yardi Systems Inc. The new apartments will add about 2.6% more units to the Dallas area’s apartment stock.
Houston and Austin also made it onto the list of markets with the most new apartments opening their doors this year.
Nationwide, more than 334,000 new rental units are scheduled for completion in 2021.
The apartment sector has quickly bounced back after the ground it lost last year at the start of the COVID-19 pandemic.
“Fueled by robust demand, rent growth came roaring back in the first half of 2020,” Yardi Systems analysts report. “Some 174,000 units were absorbed nationally through May, which puts 2021 on track to be among the hottest years since the 2008 recession.
“Second-quarter growth put asking rents up 6.3% year-over-year as of June,” the latest report says. “Gateway markets like San Francisco and New York City, which suffered an exodus of renters and subsequent falling demand last year, are seeing people return with cash in hand for new leases.”
The Dallas-Fort Worth area led the country in second-quarter apartment demand with net leasing of 15,400 in the second quarter, according to Richardson-based RealPage.
Leasing of rental units in the D-FW area soared in the last year with thousands of people relocating to the area.
North Texas apartment rents were up 7% year-over-year at the end of June.
And more than 36,000 additional apartments were under construction in the D-FW area.
