North Texas led apartment construction in 2020-2022
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Nearly 24,000 new apartment units are expected to be built in the Dallas-Fort Worth area this year, lagging only New York City for new construction, per a recent RentCafe report.
Why it matters: A housing shortage in the U.S. has contributed to the rising cost of both renting and buying.
What's happening: A surge in new apartment supply — 1.2 million units were completed during the pandemic — helped slow rent growth nationwide, but some parts of the country had more housing built than others.
- The bulk of those new apartments are in 20 metro areas, where roughly 41% of renters live, per the report by RentCafe, which analyzed data from real estate intelligence service Yardi Matrix.
- The Dallas area added the most new apartments between 2020 and 2022 of any major metro.
Of note: Around 89% of the units completed from 2020 through 2022 are high-end, per the report, versus affordable apartments many renters want.
Zoom in: The region is building more rentals this year compared to 2022, but not as many as were completed in 2020 and 2021.
- Dallas will add about 4,100 apartments this year, and Fort Worth will add almost 2,500.
- Frisco is adding nearly 2,300.
Yes, but: The region is still facing a housing shortage as more people are moving to the Dallas area than anywhere else in the country, the report says.
What's next: 1 million rental units are slated for completion through 2025, but higher costs and other headwinds could slow developers' pace in future years.