Dallas-Fort Worth Multifamily Market Report
Aggressive Building in North Suburbs and Weaker Household
Creation Ease Metroplex Momentum
Hottest areas take a step back. Rentals in Dallas' northern suburbs were in extremely high demand in 2020 and 2021, as many residents sought larger living spaces in less dense areas. Locations like Frisco-Prosper and Allen-McKinney recorded vacancy drops near 300 basis points last year, lowering rates into the mid-2 percent range. As conditions quickly tightened, the construction pipeline expanded. Both of these submarkets had annual supply growth exceeding 7.5 percent through June 2022, the fastest rises of any area with at least 25,000 units of inventory. Much of this new supply came online in the first half of this year as inflation started to impact renters' budgets, prompting some residents to find roommates, move back in with family or relocate. The slower pace of suburban household creation amid a wave of new rentals led to local vacancy hikes of at least 140 basis points in these submarkets during the first half. Still, both areas maintained rates on par with the marketwide average.