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Dallas - Fort Worth Multifamily Report | Mid-year 2022

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Surging demand underpins a strong outlook

Investors continue to rank multifamily near the top of all CRE investment categories, along with industrial uses. Several factors are contributing to the bullish outlook for multifamily in 2022 and 2023.

Underpinning the sector is an estimated national housing shortage of 3.8 million units (all housing types) and years of pent-up demand stemming from severe housing underproduction in 2009-2012, after the Great Recession. Furthermore, the millennial generation (ages 25-40) is fully in its prime rental years, and many millennials face challenges to buying their first home, forcing them to remain in rental housing.

On the supply side, the intense supply chain problems during the pandemic have eased and construction material shortages are less acute than in 2020 and 2021. Despite spikes in the cost of fuel – a key input driving price increases in many product categories – multifamily production in many markets continues to advance at a strong, often record, pace. The 459,800 units that started construction in 2021 across the country represent the largest total since 1986.

Landlords have responded to the unusually tight rental market by dramatically raising rent on new units and lease renewals. In 2020, the national average market rent exceeded $2,000 per month for the first time, and many major rental markets – DFW included – have seen year-over-year rent increases of 15-25%.


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Dallas - Fort Worth Multifamily Report | Mid-year 2022

Download Report