The Dallas-Fort Worth metropolitan area is set to have about 24,000 new apartment units constructed this year, according to Dallas Metro News.
Dallas stands second to New York City in residential development growth, based on data from the Yardi Matrix, as analyzed by RentCafe. This study reveals the effects of new construction on various U.S. regions.
Affordable housing shortages have raised rental and buying prices nationally. However, the addition of 1.2 million apartment units during the pandemic has helped to stabilize rent prices. The RentCafe report shows that most new housing, primarily apartments, is concentrated in 20 metropolitan areas. These areas house roughly 41% of U.S. renters.
From 2020 to 2022, the Dallas-Fort Worth region added more new apartments than other major U.S. areas. Yet, around 89% of these new units are considered high-end, which doesn’t meet the demand for more affordable housing.
This year’s construction in Dallas is expected to be less than in 2020 and 2021. Dallas plans to add 4,100 new apartment units, Fort Worth 2,500 units, and Frisco nearly 2,300 units.
Despite these efforts, the Dallas-Fort Worth area still faces a housing shortage. This is made worse by the high number of people moving to the region, more than to any other U.S. area, as the study indicates.
By 2025, there’s a plan to complete one million rental units. However, increasing construction costs and potential economic challenges could slow down the rate of these developments.