New Units on the Ground at Decade Level Highs but the Pace of New Development is Slowing
Wayne Williams, ALN Apartment Data
In the last few years we have been on the ground zero of the multifamily new construction explosion. Of the multifamily units currently under construction in the United States, one in seven is in Texas. Of the Texas units under construction, nearly one in three is in the North Texas metroplex. From the end of 2014 through April of this year, the Dallas- Fort Worth metro area has added more than 66,000 units to the market. Fortunately, for the most part absorption has kept pace and average occupancy has consistently remained above 92% overall; and above 94% for stabilized (non lease-up) properties. However, we are starting to see some vulnerability at the top end of the market. Furtheremore, it will take some time to absorb the new units coming online in the next several quarters.
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