When one of the country's biggest apartment builders says he thinks the construction cycle in D-FW has topped out, it pays to listen. At midyear, more than 50,000 apartments were being built in the area — one of the largest numbers of new units on the way in any market in the country.
But rising construction costs and a slowdown in rent growth will cause apartment builders to pull back a bit, says Steve Bancroft, senior managing director of Dallas-based Trammell Crow Residential. "Supply has peaked," Bancroft told members of the Stemmons Corridor Business Association at a meeting this week. "There is a little bit more supply than demand today." Bancroft said that while the outlook for rentals in North Texas and across the U.S. is strong, construction is dipping.
Bancroft said that strong job and population growth in Dallas-Ft Worth ensure continued demand for rental housing. “There is not enough housing today for everyone in the market,” he said. “It’s still hard to find a moderate priced home and those prices continue to go up.” Rapid home price increases in the area have kept many potential buyers in apartments.
“It’s still a pretty good time to be in the business,” Bancroft said. “Dallas is doing twice as well as the nation.”
- Dallas Morning News, October 10, 2017