DFW multi-family deliveries accommodate market growth as single-family production continues to lag
DFW’s growth has been strong and consistent during this cycle, adding a million jobs since the start of 2010.
February 25, 2020
- Housing development to accommodate this growth has changed dramatically.
- During the early- to mid-2000s, DFW annual home production averaged 56,000 units – 44,000 were single-family.
- On the heels of job losses in 2008 and 2009, home production slowed to 20,000 annually as we emerged from the Great Recession in 2010 and 2011. Consistent with our history, most of these units were single-family.
- As job growth came on strong, single-family production responded slowly due to the recession’s financial impacts.
- Rising land prices, a lack of single-family lot inventory at prime locations, traditional larger-sized lots, and a regional reticence to adopt higher single-family densities drove DFW’s new home prices higher.
- To accommodate the region’s growth, multi-family housing filled the gap. Since 2015, multi-family deliveries have averaged 24,000 annually – almost twice the delivery pace during the 1995 to 2006 decade
Source: JLL Research