Last summer, Dallas saw annual effective rent growth hit a historic high of 8.1 percent. This year, rents aren’t rising quite as fast, but still grew 5.3 percent in June, according to Dallas-based Axiometrics.
“This is a theme we're seeing play out in most markets around the country right now,” says Jay Dent, vice president of research for Axiometrics.
But that slight slowdown isn’t scaring people. Last week Farmington Hills, Mich.,-based Village Green, which manages approximately 1,500 units in the Dallas region, announced the opening of a new regional office in Addison, Texas. It’s the company’s sixth regional office nationally. The others are in Detroit, Chicago, St. Louis, Minneapolis, and Cincinnati.
“Opening a regional office in Texas will allow us to serve our existing clients even better, while concentrating on continued growth in the Texas market, specifically Dallas, Austin, San Antonio and Houston,” said Dallas Gregory, assistant vice president of Village Green’s Dallas Region in a statement.
In the future there could be a lot more units to manage. Axiometrics expects 5,800 units to come online this year and more than 8,000 more next year. The firm is tracking more than 100 properties accounting for over 30,000 additional units that are in various stages of planning. Dent cautions that many of these properties won’t get out of the planning phase.
“Unlike some metros around the country, new construction is fairly spread out in Dallas,” Dent says. “The reason is because the suburbs have rebounded very well for rent and occupancy growth over the last two years. There are a lot of locations around town that are very attractive for new construction based on the performance of existing properties.”