Dallas-Fort Worth’s ambitious housing surge amid national crisis

In light of the ongoing national housing shortage, the Dallas-Fort Worth metropolitan area is set to experience the construction of roughly 24,000 new apartment units this year, Dallas Metro News reported.

This significant construction volume positions the city of Texas just behind New York City for residential development growth. RentCafe’s report, based on data from the real estate intelligence platform Yardi Matrix, provides insights into the varied effects of this construction growth in different parts of the US.

The diminishing availability of affordable homes has contributed to rising rental and property prices across the country. However, the addition of 1.2 million new apartment units during the pandemic has offset the rapid rise in rental prices to some extent. The RentCafe research points out that the majority of this housing, mainly apartment units, has been concentrated in just 20 metropolitan areas, accommodating about 41% of the US’s renting population.

It is noteworthy that from 2020 to 2022, the Dallas-Fort Worth region surpassed other major US metropolitan areas in the number of new apartments constructed. Yet, this growth hasn’t necessarily matched the need for affordable housing. An estimated 89% of the constructed units in this period are high-end accommodations, differing from the economical housing many renters seek.

The year 2023 is forecasted to have a higher number of rental units than 2022, but fewer than the years 2020 and 2021. Dallas plans to introduce around 4,100 new apartment units, while Fort Worth will add about 2,500 and Frisco nearly 2,300.

Despite increased construction, the report emphasizes that the Dallas-Fort Worth region still faces a housing deficit. This shortage is intensified by the high rate of people moving to the area, higher than any other US region, according to the study.

In the coming years, a hopeful estimate of one million rental units are projected to be completed by 2025. However, rising construction expenses and potential economic challenges might slow down the rate at which developers can complete these essential units.