Report: Multi-Family Construction Outpacing Demand in Some Parts of the Country
Steve Brown reports: "Apartment construction in the Dallas area will far outpace demand, according to a new report by Yardi Systems Inc."
Specifically, the "number of new apartments opening in the next two years in Dallas will be almost three times the projected demand, according to Yardi's new forecast."
Brown is reporting from Dallas, so the primary concern of this article is for the Dallas market, but Dallas is not alone in making Yardi's list of markets overbuilding multi-family. In the words of the Yardi report, "In the near term, markets at risk of oversupply include Denver, Seattle, Charlotte, Dallas, Phoenix and Miami, where deliveries are expected to outpace demand." But, "[o]ver the longer term, the supply picture is more balanced."
In North Texas, all that building means rents are rising at the slowest pace in years, despite rapid job growth in the area.