Dallas-Fort Worth apartment rents will rise / Homeownership Down

This trend should not come as a shock as without subprime mortgages less people can afford starter homes,  DFW is continuing to grow in population and employment — and most importantly apartment supply will continue to be constrained by few banks lending for new construction and recently tightened HUD underwriting standards. Rising rents should also be grounds for focusing on developing workforce and affordable housing to moderate rents.

Low mortgage rates and bargain prices have cut homeownership costs in most Dallas-Fort Worth neighborhoods. But North Texas renters can expect to pay more during the next two years, according to the latest forecast.

A surge in demand for apartments this year has come at the same time supply is tightening. That is prompting landlords to reach for the biggest rent increases in several years.

Apartment demand has soared in North Texas this year, with tenants leasing more than twice as many rental units as were added to the market.

Read remainder of the story at Dallas Morning News.

In a related story, Fort Worth Star-Telegram notes that homeownership is at the lowest level in a decade.

The nation’s homeownership rate remained at its lowest in more than a decade, hampered by a rise in foreclosures and weak demand.

The percentage of households that owned their homes was unchanged at 66.9 percent in the third quarter, the Census Bureau said Tuesday. That’s the same as the second quarter.

The last time the rate was lower was in 1999, when it was 66.7 percent.

A record number of foreclosures and tight lending standards are expected to keep pushing the homeownership rate down and it will eventually return to pre-1995 levels, said IHS Global Insight economist Patrick Newport.

In yet another story, Dallas Morning News mentions that occupancies are up. Rents are up. Developers are scrambling to tie up construction sites again.

Just a year ago, apartment owners and investors were still looking for the bottom.

So why the quantum shift?

“Demand this year has gone through the roof,” said Greg Willett of MPF Research, which sponsored the annual apartment confab. “The apartment sector this year has gotten way, way more than its fair share of housing demand.”

Of course, home purchases are still falling. And many potential homebuyers who have the cash to make a move have decided to stay put in rentals.

Read remainder of the story at Dallas Morning News.

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About Bob Voelker

Head of the Munsch Hardt (Dallas law firm) Hospitality & Mixed Use Development Group, and former developer of affordable housing. I'm i
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One Response to Dallas-Fort Worth apartment rents will rise / Homeownership Down

  1. Pingback: Summary of Last Week’s DFWREimagined Stories | DFW REimagined – The future of real estate

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