Good news - Dallas-Fort Worth's rental market is quietly gaining strength. Three consecutive months of rent growth say so, even if it's a slight 0.2% hike from Feb to Mar.
But hold those cheers, as the annual rent growth still hovers in the negative. Yet, bright spots are appearing. Q1's absorption of 4,900 units is the highest in 2 years.
Intriguingly, it's places heavy on supply, like Frisco and Prosper, that are seeing a surge in demand. The market has absorbed 2,220 units in the past year, but with 7,340 units under construction, it's a race to balance supply and demand.
Meanwhile, areas like Mesquite, with a modest 2.1% rent growth and an average asking rent of $1,229, are holding steady.
The prediction? As demand picks up, rent growth will follow. CoStar anticipates a rebound by the second half of 2024, peaking above 3% in 2025.
Source: CoStar
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