Booming development and corporate re-locations are prompting growth in the ever expanding northern suburbs, while across Dallas, renters navigate an increasingly pricey market in search of affordable rents.
Northern Dallas suburbs are booming.
Dallas-Forth Worth is experiencing record apartment construction, with over 20,000 units expected to deliver by the end of 2015 and about 15,000 more in 2016. Relative to its size, the city’s Central Business District has seen a surge, particularly in office renovations – but the real boom is happening to the north, in suburbs like Plano and Frisco. Both Plano and Frisco have seen vacancy rates increase by more than 1 percent last year, with current rates between 4 percent and 5 percent and over 6 percent, respectively.
But there’s another reason for DFW renters to consider moving north – jobs. Big corporations like Toyota, Liberty Mutual and State Farm are re-locating to new developments in the city’s northern neighborhoods and anticipate bringing over 15,000 jobs to the area by 2018. Local jurisdictions expect this trend to continue. And as long as the local economy stays strong, developers will likely continue to break ground in this area.
Vacancy by Submarket
Across the city, rent prices have skyrocketed.
At a whopping 5.6 percent, year-over-year rent growth in Dallas has been incredibly strong. It’s even outpaced that of other major metro areas like Chicago and Washington, D.C., where year-over-year rent growth is at 4.1 percent and 2.9 percent, respectively. And while face rents in greater Dallas are much lower than those in other cities of similar size, these rates are rising at a rapid pace. In many of Dallas’ submarkets, asking rent prices have increased more than $80 per month since last year.
Asking Rent Change, Year Over Year
Compared to other large U.S. cities, new apartments in Dallas are relatively affordable.
Dallas-Fort Worth has average asking rents of $984 per month for a one-bedroom/one-bathroom apartment, compared to $1,328 per month for Chicago, and $1,699 per month for Washington, D.C. Dallas households earning the median metro income of about $60,000 and willing to budget 28 percent of that toward living costs can afford rents of $1,400 per month, which could land them in a newly built, two bedroom apartment in West Plano or Frisco.
Renters seeking the live/work/play lifestyle of central Dallas can find it for less in a neighborhood nearby.
Chic neighborhoods like Uptown and Turtle Creek in the Oak Lawn/Park Cities submarket are getting all the headlines,but neighborhoods like Deep Ellum, the Southwestern Medical District and the Bishop Arts District deserve acknowledgement as well. Millennial renters who can’t afford to pay $2,000 per month for rent for a one-bedroom/one bathroom apartment are flocking to these areas. While these neighborhoods are barely a hop and a skip from Oak Lawn/ Park Cities and the Central Business District, their rent prices run $400 cheaper per month on average.