Dallas 4Q23 Multifamily Market Insights Report: Sales slow, but a wide range of properties continue to trade

Highlights: 

• Following a healthy middle part of 2023, multifamily operating conditions in Dallas-Fort Worth cooled in the fourth quarter. Renter demand remained strong, but completions outpaced absorption — resulting in rising vacancy levels and a modest rent decline. Rapid economic growth brightens the outlook for 2024.
• Vacancy in Dallas-Fort Worth rose 120 basis points in 2023, ending the year at 7.1%. The current rate is higher than the region’s longer-term range; during the past five years, vacancy has averaged 5.2%.
• After rising in the middle part of the year, rents trended lower in the fourth quarter. Rents dipped to $1,526 per month, down
  0.5% year over year. Rents should trend higher in 2024 as absorption remains elevated.
• While the number of properties that sold in 2023 was down significantly from levels recorded in recent years, Dallas-Fort Worth was still a top market for multifamily investment sales volume for the year. Transactions closed across property classes and pricing closely tracked levels from prior years. In transactions where pricing is available, the median price reached $159,800 per unit.

Read the report, or engage with our Dallas office to learn more.