Sales of Existing Multifamily Assets Continue at Healthy Clip

Ladera Ranch Apartments is a garden-style multifamily complex in Irving, TX.

IRVING, TX—Healthy demographics and corporate expansions continue benefiting apartment operations in the Dallas/Fort Worth metroplex. Strong job growth, fostered by companies such as Charles Schwab and TD-Ameritrade expanding in the area, is driving a migration increase and boosting the number of households in the metro, according to Marcus & Millichap‘s third quarter Dallas multifamily research report.

These factors have underpinned the need for housing, placing downward pressure on vacancy during the previous four quarters, and pushed the average effective rent above $1,000 per month, setting a record high. As demand has outpaced past supply additions, builders are ramping up construction this year with deliveries significantly exceeding the previous five-year average, says Marcus & Millichap.

In addition, sales of existing multifamily assets continue at a healthy clip. Investor interest is picking up in the metroplex as transaction velocity has jumped 12% at the half-way point of the year. In the prior annual period, sales moved up 8%.