30 Oct Great Market or Overbuilding in DFW?
“DFW is where we are putting our chips in today. We see the risk-adjusted returns are better in Dallas today and the profit spread is wider in Dallas today and the growth opportunity is better in Dallas today,” JPI Senior Vice President Matt Brendel said. But are too many multifamily developers saying it?
Pixabay Dallas In a city with consistent job growth, it is no wonder developers are in love with Dallas. People flock here by the hundreds every day, and demand for multifamily product is unquestionably present, as occupancy is up around 95% in DFW.
But there are some concerns with the market, namely that there are too many developers high on Dallas’ strong multifamily fundamentals. High levels of interest in a market outperforming most of the rest of the U.S. are spurring nervous mutterings about overbuilding among some experts in the field.
Research from multiple firms shows that consistent, significant construction deliveries through the end of this year and into 2018 are slowing rent growth. CBRE Director of Research and Analysis Robert Kramp said labor shortages and increased material costs could decrease construction, preventing Dallas from oversupplying itself.
Read More Via Bisnow.com