Apartment rents in Dallas-Fort Worth, which fell in April and May, stopped or at least paused the downward trend last month, according to a report from ApartmentData.com.
The overall average monthly rent for DFW apartments in June was $1,161, which was a buck higher than the average rent in May. The overall average is still $15 lower than its $1,176 level on March 31.
Bruce McClenny, president of ApartmentData.com, said strong demand drove the market in June.
“Rent has stopped the slide since March with a fairly healthy absorption of 1,946 units,” McClenny said in an email to the Dallas Business Journal. DFW posted absorption of 1,155 units in April, 495 units in May and 1,946 units in June.
While June rebounded sharply, absorption is down significantly from last year, when the market absorbed 3,082 units in April 2019, 3,368 units in May 2019, and 3,372 units in June 2019.
Turning back to this year, Class A apartments had an average rent of $1,478 in June, the same as the previous month, but down $32 since March 31.
Class B units averaged $1,144 in June, which is up $5 from May and down $12 since March 31.
Class C apartments held steady in May and June at $992. That’s $7 lower than the $999 average for Class C units on March 31.
Class D apartments averaged $853 in June, down $1 from May and $3 since March 31.
Apartment rents had been relatively steadily rising before the economic fallout — including heavy job losses — of COVID-19.
“Just when you think we are out of the COVID woods, it returns,” McClenny said in the email. “This month will be a very interesting and telling month to watch to see if traffic slows down with spikes in new cases or if people continue to go about their business and keep traffic (absorption or demand) as elevated as June.”
The DFW multifamily market has 3,188 apartment communities with an operating supply of 754,961 units, according to the ApartmentData.com report.
Publication: Dallas Business Journal