The long-predicted slowdown in North Texas apartment construction may finally be in the works. With over 50,000 rental units under construction, Dallas-Fort Worth has been the top apartment building market in the country in recent years. But a significant slowdown in permits for new apartments this year may herald a decline in building cranes on our horizon. For the 12-month period ending in July, Dallas-area apartment permits were down almost 20 percent from a year earlier, according to data from Richardson-based RealPage. Dallas and Atlanta were the only two top-10 U.S. apartment markets to see a year-over-year decline in building permits, RealPage reports. Apartment analysts have been forecasting a slowdown in North Texas building starts to let the market catch up with several years of dramatic construction.
For the 12 months ending in July, Dallas-area developers filed permits to start just under 19,000 apartments. That was second in the U.S. to New York City, which had more than 30,000 starts. Rents in Dallas-Fort Worth in July rose less than 3 percent from a year earlier. That's almost half the recent peaks of annual apartment rent growth in North Texas.
- Dallas Morning News, September 12, 2017