- U.S. Apartment market still fundamentally sound w/ the majority of markets remaining historically tight:
- Vacancies at an all-time low in Dallas markets w/ 5% supply as inventory.
- 14.5% cumulative apt growth over five year period in Dallas market (Top 5):
- Declining home ownership
- Under-supply of homes
- Household formation outpacing new construction single-family homes. “Half a home for each household”:
- Nearly 69% of households are now renters.
- Households w/ $100K+ annual income renting, as compared to owning, has increased 76% over a 4 year period, more than any other category.
- 4 & 5 Star apartment supply as a % of inventory normal when compared to previous years/cycles.
- 60% of multi-family new construction next to traditional office areas up from a five year 50% average.
- National rent average growth at 4% down from peak of 6% in 2015:
- DFW 5.7% YoY rent growth (#11)
- Houston -0.3% rent growth down from around 6% growth last year. (Second lowest this year due to oil crisis)
by DAN CAMPANELLA, Broker/Owner @ R.E.INVEST Brokerage, LLC. on August 19th, 2016.