DFW’s multifamily development pipeline beginning to slow – possibly suggesting an occupancy uptick
A year ago, DFW’s multifamily development pipeline was at 55,000 dwelling units.
November 20, 2019
- A year ago, DFW’s multifamily development pipeline was at 55,000 dwelling units. Currently, the pipeline has dropped 25 percent – to 41,000 units.
- We estimate 33,000 units to deliver by year-end. While this will make 2019 another high-delivery year, at this juncture, 2020 looks to be taking a pause.
- Demand for apartments will also remain high. Given conservative near-term job gains of 100,000 annually (DFW is at over 115,000, year-to-date), a reasonable mix of full-time and multiple jobs per household, and the mix of renters – apartment demand will exceed supply.
- This “extra” demand suggests we should see occupancy increase in existing Class A projects, which have experienced some downward pressure in the last couple of years (see last week’s Snapshot).
- Importantly, apartments are under construction across the region, in a variety of submarkets, to accommodate our expanding job base and give renters the option to find housing close to their employers.
Source: JLL Research