Past Evolutions in the DFW Market
Over the last 10 years, sheer population growth has led to significant change in the Dallas Fort Worth (DFW) market. While the Metroplex is already the 4th largest MSA in the US, it led the nation in population growth by adding 1.25M new residents to the market, attributing to a 24% total population increase. DFW has blossomed into a unique combination of bustling street activity and a constantly growing selection of art, fine dining, and shopping due to this influx of new consumers.
The Appeal of DFW
So, what makes the DFW area so appealing? A relatively temperate climate, being 1 of 9 states with no state income tax, and a pro-business environment has made Dallas Fort Worth appealing for individuals and companies alike. The metro is considered an innovation hub with a wealth of resources that make it an ideal business location. This has made DFW a strong job foundation and is home to over 1,500 corporate headquarters, including 25 of the Fortune 500. The area supports over 3.8 million workers and has added more than 310,000 jobs over the past 3 years. Let’s not forget about the vast array of sporting events, nightlife, music festivals, and restaurants that reside in the city! Each of these factors has made DFW an appealing option for individuals and companies looking to relocate.
DFW Real Estate Drivers
The Dallas Fort Worth metroplex has emerged as a hot spot for apartment investment over the past few years. Investors have fled the high-priced core coastal metros such as San Francisco and New York and have pursued opportunities in DFW. The inflow of capital and resident population has led to the largest increase of new multifamily supply since 2012. Along with the uptick in construction activity, the DFW market has continued to lead the nation in apartment demand. With new building permits finally starting to trend downward, DFW should continue to see strong growth on both rental rates and occupancy in the foreseeable future.
What’s to come?
Dallas Fort Worth is projected to once again lead the nation in market growth through 2030, expected to pass Chicago as the #3 ranked MSA in the US. Given the projected continuance of in-migration and corporate relocations, combined with North Texas being considered one of the most appealing markets to live and work in, DFW should continue to be a leading market for multifamily real estate. The 10-year outlook for the Texas economy remains bright!